Impact of Fintech toward selected banks performance

• Main Author: Leong, Pui Yee
• Format: Thesis
• Language: English; English
• Published: 2020
• Subjects: HG Finance
• Online Access: https://etd.uum.edu.my/10383/1/depositpermission_s825799.pdf; https://etd.uum.edu.my/10383/2/s825799_01.pdf; https://etd.uum.edu.my/10383/
• Institution: Universiti Utara Malaysia

This study objective was to examine the impact of digital payment toward bank performance. Two major elements for digital payments which constituted payment instruments and payment channels. Mobile banking and internet banking as payment instruments items and payment channels contained four items which were credit card, charge card, debit card and e-money. Total eight variables tested towards bank performance in this study. Meanwhile, four determinants of bank performance included ROA, ROE, TA and NII examined on the relationships between independent variables by regression analysis. In this study, payment instruments and payment channels data collected from BNM based on total value from year 2010 until 2019. The research focused top 13 local and foreign banks in Malaysia with 10 years completed financial report and information disclosure according to Bursa Malaysia. The results showed internet banking, credit card, debit card and e-money has negative significant to the bank performance. However, charge card has statistically significant influenced the bank performance on ROA, ROE and NII. Meanwhile mobile banking also showed significant affected on ROE. At the result, all variables has no significant to TA which meant the payment system has no influence on the bank size. Malaysia aimed to become high value and developed country in year 2020 has launched varims programs and encouraged Fintech development to continue compete in global market. Financial industry has transformed to new business trend due to Fintech innovations especially banking payment system. Therefore eight hypothesis established to understand the relationships between payment elements and bank performance based on the research objectives.