4,778
Views
1
CrossRef citations to date
0
Altmetric
Banking & Finance

The relationship between the risks of adopting FinTech in banks and their impact on the performance

ORCID Icon &
Article: 2174242 | Received 06 Sep 2022, Accepted 25 Jan 2023, Published online: 19 Feb 2023

References

  • Aggarwal, V. S., & Kapoor, M. (2021). Multigroup analysis of higher-order model of knowledge variables in the context of global ventures through PLS-SEM. South Asian Journal of Business Studies, 10(1), 128–35. https://doi.org/10.1108/SAJBS-02-2020-0037
  • Aldasoro, I., Gambacorta, L., & Giudici, P. (2020). Operational and cyber risks in the financial sector. 8, No. 840. SSRN, Elsevier. https://ssrn.com/abstract=3549526
  • Al-Dmour, H., Asfour, F., Al-Dmour, R., & Al-Dmour, A. (2020). The effect of marketing knowledge management on bank performance through fintech innovations: A survey study of Jordanian commercial banks. Interdisciplinary Journal of Information, Knowledge, and Management, 15, 203–225. https://doi.org/10.28945/4619
  • Ali, F., Rasoolimanesh, S. M., Sarstedt, M., Ringle, C. M., & Ryu, K. (2018). An assessment of the use of partial least squares structural equation modeling (PLS-SEM) in hospitality research. International Journal of Contemporary Hospitality Management. https://doi.org/10.1108/IJCHM-10-2016-0568
  • Ali, M., Raza, S. A., Khamis, B., Puah, C. H., & Amin, H. (2021). How perceived risk, benefit and trust determine user Fintech adoption: A new dimension for Islamic finance. Foresight, 23(4), 403–420. https://doi.org/10.1108/FS-09-2020-0095
  • Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological, 103(3). http://www.personal.psu.edu/jxb14/M554/articles/Anderson&Gerbing1988.pdf
  • Aubert, B. A., Rivard, S., & Patry, M. (2004). A transaction cost model of IT outsourcing. Information & Management, 41(7), 921–932. https://doi.org/10.1016/j.im.2003.09.001
  • Bahli, B., & Rivard, S. (2003). The information technology outsourcing risk: A transaction cost and agency theory-based perspective. Journal of Information Technology, 18(3), 211–221. https://doi.org/10.1080/0268396032000130214
  • BCBS. (2018). Implications of fintech developments for banks and bank supervisors. Sound Practises, 10(February), 1–49. https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&scioq=BCBS.+%282018%29.+Implications+of+fintech+developments+for+banks+and+bank+supervisors&q=BCBS.+%282018%29.+Implications+of+fintech+developments+for+banks+and+bank+supervisors.&btnG=
  • Becker, J.-M., Klein, K., & Wetzels, M. (2012). Hierarchical latent variable models in PLS-SEM: Guidelines for using reflective-formative type models. Long Range Planning, 45(5–6), 359–394. https://doi.org/10.1016/j.lrp.2012.10.001
  • Blakstad, S., & Allen, R. (2018). Leapfrogging Banks in Emerging Markets. FinTech Revolution. https://doi.org/10.1007/978-3-319-76014-8_7
  • Bouveret, A. (2018). Cyber risk for the financial sector: A framework for quantitative assessment. International Monetary Fund.
  • Brewer, N., Wilson, C., & Beck, K. (1994). Supervisory behaviour and team performance amongst police patrol sergeants. Journal of Occupational and Organizational Psychology, 67(1), 69–78. https://doi.org/10.1111/j.2044-8325.1994.tb00550.x
  • Buckley, R. P., Arner, D. W., Zetzsche, D. A., & Selga, E. (2019). The dark side of digital financial transformation: The new risks of FinTech and the rise of techRisk. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3478640
  • Bu, Y., Li, H., & Wu, X. (2021). Effective regulations of FinTech innovations: The case of China. Economics of Innovation and New Technology. https://doi.org/10.1080/10438599.2020.1868069
  • Cebula, J. L., & Young, L. R. (2010). A taxonomy of operational cyber security risks CERT ® program A Taxonomy of operational cyber security risks the original document contains color images. December. Software Engineering Institute. http://www.sei.cmu.edu
  • Chapelle, A. (2019). Operational risk management: Best practices in the financial services industry. John Wiley & Sons.
  • Chen, X., You, X., & Chang, V. (2021). FinTech and commercial banks’ performance in China: A leap forward or survival of the fittest? Technological Forecasting and Social Change, 166, 120645. https://doi.org/10.1016/j.techfore.2021.120645
  • Comrey, A. L., & Lee, H. B. (1992). A first course in factor analysis. Taylor & Francis Group. https://doi.org/10.4324/9781315827506
  • Cooper, D. R., & Schindler, P. S. (2014). Business research methods.© The McGraw− Hill companies. McGraw Hill International Edition, New York. https://www.scirp.org/(S(351jmbntv-nsjt1aadkposzje))/reference/referencespapers.aspx?referenceid=2397726
  • Cortina, J. J., & Schmukler, S. L. (2018). Research & policy briefs. The Fintech Revolution: A Threat to Global Banking? 4. Elsevier. https://documents1.worldbank.org/curated/en/516561523035869085/pdf/125038-REVISED-A-Threat-to-Global-Banking-6-April-2018.pdf
  • Dwivedi, P., Alabdooli, J. I., & Dwivedi, R. (2021). Role of FinTech adoption for competitiveness and performance of the Bank: A study of banking industry in UAE. International Journal of Global Business and Competitiveness, 16(2), 130–138. https://doi.org/10.1007/s42943-021-00033-9
  • Fan, Y., Chen, J., Shirkey, G., John, R., Wu, S. R., Park, H., & Shao, C. (2016). Applications of structural equation modeling (SEM) in ecological studies: An updated review. Ecological Processes, 5(1), 1. https://doi.org/10.1186/s13717-016-0063-3
  • Field, A. (2013). Discovering statistics using IBM SPSS statistics. SAGE Pubblishing India Pvt Ltd.
  • Franco, L., Garcia, A. L., Husetovic, V., & Lassiter, J. (2020). Does fintech contribute to systemic risk? Evidence from the U.S. And Europe. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3468809
  • Geijteman, E., & Mevius, L. (2016). Lekkende borsten, gammele kleppen en kleverige matjes. Nederlands Tijdschrift Voor Geneeskunde, 160(12–13), 5–40. https://books.google.co.in/books?hl=en&lr=&id=5hfYLlr80moC&oi=fnd&pg=PA17&dq=+Nederlands+Tijdschrift+Voor+Geneeskunde,+160(12%E2%80%9313),+5%E2%80%9340+.&ots=InQBZ68BAW&sig=vpSPNqUB7R3v2n6_uc0zWl18tkg&redir_esc=y#v=onepage&q=Nederlands%20Tijdschrift%20Voor%20Geneeskunde%2C%20160(12%E2%80%9313)%2C%205%E2%80%9340%20.&f=false
  • Giudici, P. (2018). Fintech risk management: A research challenge for artificial intelligence in finance. Frontiers in Artificial Intelligence, 1(November), 1–6. https://doi.org/10.3389/frai.2018.00001
  • Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the Fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of Management Information Systems, 35(1), 220–265. https://doi.org/10.1080/07421222.2018.1440766
  • Gu, Y., Zhu, S., Yang, Z., Zhao, Y., Yuan, X., & Elhoseny, M. (2019). Research on banking systemic risk contagion based on network dynamic time-variant contagion kinetics model. Journal of Intelligent and Fuzzy Systems, 37(1), 381–395. https://doi.org/10.3233/JIFS-179094
  • Hair, J. F., Anderson, R. E., Babin, B. J., & Black, W. C. (2010). Multivariate data analysis: A global perspective: Pearson Upper Saddle River. Kennesaw State University.
  • Hair Jr, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
  • Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. 10.2753.MTP1069-6679190202. https://doi.org/10.2753/MTP1069-6679190202.
  • Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review. Emerald Publishing Limited.
  • Hasaka, K. (2019). Institutional Knowledge at Singapore Management University The Impact of fintech innovations and financial standards on bank performance: Evidence from selected commercial banks in ASEAN. Dissertations and Theses. Singapore Management University.
  • Hasan, D. 2019). Analysis of banking service financial technology (Fintech) risk management in Islamic banks (Case Study at Bank Syariah X in Jakarta). KnE Social Sciences, (2019, 492–508. https://doi.org/10.18502/kss.v3i26.5396
  • Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management and Data Systems, 116(1), 2–20. https://doi.org/10.1108/IMDS-09-2015-0382
  • Hoecht, A., & Trott, P. (2006). Outsourcing, information leakage and the risk of losing technology‐based competencies. European Business Review. Emerald Group Publishing Limited.
  • Jayalath, J. A. R. C., & Premaratne, S. C. (2021). Analysis of key digital technology infrastructure and cyber security consideration factors for fintech companies. International Journal of Research Publications, 84(1), 128–135. https://doi.org/10.47119/ijrp100841920212246
  • Jr, H., Joseph, F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications.
  • Kaplan, R. S., Norton, D. P., Norton, D. R., Marvin Bower Professor of Leadership Development Boston, H. B. S., & Collaborative, B. S. (2005). The balanced scorecard: Measures that drive performance. Harvard Business Review. https://books.google.co.in/books?id=jXAGngEACAAJ
  • Kasem, S., Yamada, S., Kiupel, M., Woodruff, M., Ohya, K., & Fukushi, H. (2008). Equine herpesvirus type 9 in giraffe with encephalitis. Emerging Infectious Diseases, 14(12), 1948. https://doi.org/10.3201/eid1412.080801
  • Kaur, G., Lashkari, Z. H., & Lashkari, A. H. (2021). Understanding cybersecurity management in FinTech: Challenges, strategies, and trends. Springer. http://www.springer.com/series/16360
  • Kemp, M. H. D. (2017). Systemic Risk and the Financial System. Systemic Risk, 5–29. https://doi.org/10.1057/978-1-137-56587-7_2
  • Khalil, F., & Alam, H. M. (2020). Identification of Fintech driven operational risk events. Journal of the Research Society of Pakistan, 1(57), 75–87. http://pu.edu.pk/images/journal/history/PDF-FILES/6_57_1_20.pdf
  • Ky, S., Rugemintwari, C., & Sauviat, A. (2019). Is Fintech good for bank performance? The case of mobile money in the east African community. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3401930
  • Lim, T., & Thng, P. (2021). Outsourcing life cycle model for financial services in the fintech era. Proceedings of the International Conference on Industrial Engineering and Operations Management, 703–731.
  • Lukonga, M. I. (2018). Fintech, inclusive growth and cyber risks: Focus on the MENAP and CCA regions. International Monetary Fund.
  • Martinez, P. (2013). TRADE FINANCE Production Manager. Emerald Group Publishing Limited.
  • Mehrban, S., Khan, M. A., Nadeem, M. W., Hussain, M., Ahmed, M. M., Hakeem, O., Saqib, S., Kiah, M. L. M., Abbas, F., & Hassan, M. (2020). Towards secure FinTech: A survey, taxonomy, and open research challenges. IEEE Access, 8, 23391–23406. https://doi.org/10.1109/ACCESS.2020.2970430
  • Memon, A. H., & Rahman, I. A. (2014). SEM-PLS analysis of inhibiting factors of cost performance for large construction projects in Malaysia: Perspective of clients and consultants. The Scientific World Journal, 2014, 1–9. https://doi.org/10.1155/2014/165158
  • Mesic, D. (2021). Origin, role and supervision of fintech firms. American Journal of Applied Scientific Research, 7(3), 29. https://doi.org/10.11648/j.ajasr.20210703.11
  • Najaf, K., Schinckus, C., Mostafiz, M. I., & Najaf, R. (2020). Conceptualising cybersecurity risk of fintech firms and banks sustainability. Sheffield Hallam University Research Archive (SHURA). https://shura.shu.ac.uk/id/eprint/27504
  • Nguyen, L., Tran, S., & Ho, T. (2021). Fintech credit, bank regulations and bank performance: A cross-country analysis. Asia-Pacific Journal of Business Administration. https://doi.org/10.1108/APJBA-05-2021-0196
  • Nitzl, C., & Chin, W. W. (2017). The case of partial least squares (PLS) path modeling in managerial accounting research. Journal of Management Control, 28(2), 137–156. https://doi.org/10.1007/s00187-017-0249-6
  • Owusu, A., & Liu, S. (2017). Business intelligence systems and bank performance in Ghana: The balanced scorecard approach. Cogent Business and Management, 4(1), 1. https://doi.org/10.1080/23311975.2017.1364056
  • Panetta, F. (2018). Fintech and banking: Today and tomorrow. May, Harvard Law School Bicentennial Annual Reunion of the Harvard Law School Association of Europe, 1–11. https://www.bancaditalia.it/pubblicazioni/interventi-direttorio/int-dir-2018/panetta-120518.pdf
  • Qin, L., Wu, H., Zhang, N., & Li, X. (2012). Risk identification and conduction model for financial institution IT outsourcing in China. Information Technology and Management, 13(4), 429–443. https://doi.org/10.1007/s10799-012-0131-z
  • Romanova, I., & Kudinska, M. (2016). Banking and fintech: A challenge or opportunity? Contemporary Studies in Economic and Financial Analysis, 98, 21–35. https://doi.org/10.1108/S1569-375920160000098002
  • Rozzani, N., & Rahman, R. A. (2013). Camels and performance evaluation of banks in Malaysia: Conventional versus Islamic. Journal of Islamic Finance and Business Research, 2(1), 36–45. https://d1wqtxts1xzle7.cloudfront.net/50499350/Camels_and_Performance_Evaluation_of_Ban20161123-4130-1lbsvtl-libre.pdf?1479903508=&response-content-disposition=inline%3B+filename%3DCamels_and_performance_evaluation_of_ban.pdf&Expires=1676193666&Signature=WuUMIFKetdg8i9uBvdWdeYBEm4OPZjBdrBy-L-DaTSysSSEz6ZLxbTB5JtDqpongjNjf4vzIkA9tRFoo0I277VfZA9hcMGyiVpBN6s4zd~qfEIbub9sfuy7l-8VM6stl7KdmU9qUjXcDKIP-CPPDBDAs~NJZbjT4La9zVeZP9-X~syE46~Xz8jXv2YJH0qwYsF9AwRHusWmWo7ycKC2LEa99xEmkxBUDY8AHHaxpx-0sNhh7soIcq0lj68jgNIEfPJIDEjEABPKGA9Sua~xxeLwFmh-4OesZItYVBW6BpnD37nb3g76Uwvv4bhAFLySOtXfWbhDCGc~8kdXPl5lRaQ__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA
  • Ryu, H. S. (2018). Understanding benefit and risk framework of Fintech adoption: Comparison of early adopters and late adopters. Proceedings of the Annual Hawaii International Conference on System Sciences, 2018-Janua, 3864–3873. https://doi.org/10.24251/hicss.2018.486
  • Saleem, A. (2021). Fintech revolution, perceived risks and Fintech adoption: Evidence from financial industry of pakistan. International Journal of Multidisciplinary and Current Educational Research (IJMCER), 3(1), 191–205. www.ijmcer.com
  • Samantra, C., Datta, S., & Mahapatra, S. S. (2014). Risk assessment in IT outsourcing using fuzzy decision-making approach: An Indian perspective. Expert Systems with Applications, 41(8), 4010–4022. https://doi.org/10.1016/j.eswa.2013.12.024
  • Sapian, S. M., Abdulkadir, N., & Ibrahim, N. (2021). Trade finance in digital Era: Can FinTech harness the current risks and challenges? The Journal of Muamalat and Islamic Finance Research, 18(1), 78–89. https://doi.org/10.33102/jmifr.v18i1.331
  • Sarstedt, M., Hair, J. F., Cheah, J. H., Becker, J. M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197–211. https://doi.org/10.1016/j.ausmj.2019.05.003
  • Singh, R., Malik, G., & Jain, V. (2021). FinTech effect: Measuring impact of FinTech adoption on banks’ profitability. International Journal of Management Practice, 14(4), 411–427. https://doi.org/10.1504/IJMP.2021.116587
  • Sridharan, U. V. (2021). Fintech, digital payments, and the risks of outsourcing payroll accounting: The case of MyPayRollHR. Journal of Accounting & Finance (2158-3625), 21, 3. http://www.m.www.na-businesspress.com/JAF/JAF21-3/5_SridharanFinal.pdf
  • Supervision), B. (Basel C. on B. (2018). Sound Practices: implications of Fintech developments for banks and bank supervisors.
  • Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational Statistics and Data Analysis, 48(1), 159–205. https://doi.org/10.1016/j.csda.2004.03.005
  • Urbach, N., & Ahlemann, F. (2010). Structural equation modeling in information systems research using partial least squares. Journal of Information Technology Theory and Application, 11(2), 5–40. https://aisel.aisnet.org/jitta/vol11/iss2/2
  • Vinzi, V. E., Trinchera, L., & Amato, S. (2010). Handbook of partial least squares. Handbook of Partial Least Squares. https://doi.org/10.1007/978-3-540-32827-8
  • Vučinić, M. (2020). Fintech and financial stability potential influence of fintech on financial stability, risks and benefits. Journal of Central Banking Theory and Practice, 9(2), 43–66. https://doi.org/10.2478/jcbtp-2020-0013
  • Wetzels, M., Odekerken-Schröder, G., & Van Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33(1), 177–195. https://doi.org/10.2307/20650284
  • Wonglimpiyarat, J. (2017). FinTech banking industry: A systemic approach. Foresight, 19(6), 590–603. https://doi.org/10.1108/FS-07-2017-0026
  • Yuan, K., & Xu, D. (2020). Legal governance on fintech risks: Effects and lessons from China. Asian Journal of Law and Society, 7(2), 275–304. https://doi.org/10.1017/als.2020.14
  • Zhu, C., & Hua, G. (2020). The impact of China’s internet finance on the banking systemic risk–an empirical study based on the SCCA model and stepwise regression. Applied Economics Letters, 27(4), 267–274. https://doi.org/10.1080/13504851.2019.1613494