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VOL. 10, ISSUE 2 (2024)
Fintech disruption: Evaluating fintech's impact on banks’ profitability
Authors
Shambhavi Mishra, Shashank Tomar, Amit Malhotra
Abstract
The present study aims to investigate the
impact of financial technology (fintech) adoption by banking institutions on
their net profitability within the Indian banking sector. The research employed
a panel dataset encompassing 15 banking entities, including both Public Sector
Banks (PSBs) and Private Banks, over a period of seven quarters. Secondary data
is sourced from the Reserve Bank of India (RBI) and the annual financial
reports of the selected banks. The study focuses on Net Profit as the dependent
variable, which is a measure of the overall financial performance of the banks.
The selected independent variables serve as proxies for the banks' fintech
adoption. The results indicated a statistically significant positive
relationship between Net Profit and the deployment of Unified Payments
Interface (UPI) Quick Response (QR) codes. Based on research findings, it is
suggested that banks highly prioritize integrating QR Codes into their digital
payment infrastructure. This strategic approach is expected to enhance
operational efficiency, drive up transaction volumes, broaden the customer
base, and consequently elevate profitability.
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Pages:96-102
How to cite this article:
Shambhavi Mishra, Shashank Tomar, Amit Malhotra "Fintech disruption: Evaluating fintech's impact on banks’ profitability". International Journal of Commerce and Management Research, Vol 10, Issue 2, 2024, Pages 96-102
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