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Cross-country analysis reveals FinTech enhances small banks, but detracts from medium-sized ones.
The article investigates the impact of FinTech development on the performance of banks across multiple countries using cross-country panel regression analysis to supplement numerous similar country-specific studies with a global perspective. The study employs fixed-effects models to assess the relationship between FinTech adoption, measured through global indices, and key indicators of bank performance such as capital adequacy ratio, total assets, and dividend yields. Special attention is given to variations in bank size, with results indicating that FinTech development positively affects small banks, negatively influences medium-sized banks, and has little to no effect on large banks. The analysis confirms that FinTech has become a significant factor reshaping the financial sector, with heterogeneous effects depending on bank size and market structure.
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Царан et al. (2025) studied this question.
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