Does Fintech development have a diverse impact on banking performance and stability? A panel study of Indian banks

Does Fintech development have a diverse impact on banking performance and stability? A panel study of Indian banks | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Does Fintech development have a diverse impact on banking performance and stability? A panel study of Indian banks Rafi Farooq, Amir Rahman, Khalid Ashraf Chisti This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6576041/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper investigates the influence of fintech on banking performance and stability using a sample of Indian banks from 2013 to 2022. The investigation was carried out using feasible generalized least squares and Quantile regression while the robustness of the results was demonstrated using GMM. Consistent across all models, the study found that fintech hurts the performance and stability of banks. The ownership structure shows that public and foreign banks had no effect, private banks benefit, and cooperative banks suffer from fintech innovation. With the exception of Private banks, fintech has a detrimental effect on the stability of traditional banks. The research also indicated that fintech developments negatively affect non-performing loans (NPL), suggesting that banks can minimize their NPLs by employing fintech departments. This is the first research that examines the effects of fintech on bank performance, stability, and loan performance in the Indian banking sector. The study offers some suggestions and recommendations to policymakers. Business and commerce/Business and management Business and commerce/Economics Business and commerce/Finance Social science/Economics Social science/Finance Fintech Stability Performance FGLS & Quantile Regression Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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