Investigating the impact of Adopting Financial Technology on Commercial Banks' Profitability : An Empirical Study

In recent years technology has expanded immensely, and its application to the banking industry has been exponential. Therefore, Financial Technology (FINTECH) was coined to broadly identify the application of new technology in the banking industry. Accordingly, the implications of FINTECH in the banking industry are motivating a considerable amount of research. In recent years we have witnessed immense technological development, and its application to the banking industry has been exponential. Therefore, the expression Financial Technology, more commonly referred to as FINTECH was coined to broadly identify the application of new technologies in the banking industry.
This dissertation aims to contribute to such a stream of literature. Specifically, its primary goal is to understand the impact of adopting FINTECH in the commercial banking industry. Analogous studies have focused on a single country analysis, such as Indonesia, China and the United States. Instead, the present study aims to quantify the impact of adopting FINTECH on the commercial bank’s profitability in Egypt, assessing performance with several measures. The sample consists of 15 Egyptian commercial Banks. The study period runs from 2017 to 2022. Methodologically, the study relies on multiple regression analysis which is T-test, F-test and R2 model to estimate the impact of financial technology on commercial bank’s profitability in Egypt. The study found that only asset leverage has significant effect on the dependent variable (ROA), while the other studied variables (Independent variables) have no significant impact on bank’s profitability.