A moderated mediation analysis on fintech adoption, social influence, competitiveness and financial performance of commercial banks in Pakistan

  • Received September 18, 2023;
    Accepted October 25, 2023;
    Published November 30, 2023
  • Author(s)
    Aamir Hussain ,
    Md Shahin Mia
    ORCID , Ferdoushi Ahmed , Paratta Prommee
  • DOI
    http://dx.doi.org/10.21511/bbs.18(4).2023.19
  • Article Info
    Volume 18 2023, Issue #4, pp. 226-240
  • TO CITE АНОТАЦІЯ
  • Cited by
    1 articles
  • 576 Views
  • 275 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Commercial banks in Pakistan have a great potential to improve competitiveness and financial performance through fintech adoption. Therefore, this study aims to assess the impact of fintech adoption on financial performance of commercial banks while emphasizing the moderating role of social influence and mediating role of competitiveness in the banks in Pakistan. A cross-sectional survey was conducted with five largest and most reputed commercial banks in Pakistan. Bank employees, particularly bank managers, were chosen as the respondents. The sample size for the study was 367 bank managers selected randomly from the chosen commercial banks. A standardized and structured questionnaire was used to interview the selected respondents to collect primary data. The partial least square structural equation modelling was employed to analyze the data and process the findings of the study. The analysis revealed that 62% of the respondents were male, and nearly 47% were in the age of 40 years and above. The study found a positive and significant impact of fintech adoption on the financial performance of banks. It was also found that social influence had a significant impact on banks’ competitiveness. Moreover, the findings revealed that competitiveness had a significant mediation impact on the increase in fintech adoption and consequently on the financial performance of banks.

Acknowledgment
The authors are thankful to the respondents (i.e., the employees of the selected banks) to participate in the survey without any financial benefit.

view full abstract hide full abstract
    • Figure 1. Research model and hypotheses
    • Figure 2. Assessment of the measurement model
    • Figure 3. Assessment of the structural model
    • Table 1. Variables and their measurements
    • Table 2. Demographic profile of the respondents
    • Table 3. Summary findings of reliability of the constructs
    • Table 4. Assessment of convergent validity
    • Table 5. Discriminant validity matrix using the Fornell-Larker approach
    • Table 6. Summary findings of hypothesis testing
    • Conceptualization
      Aamir Hussain, Md Shahin Mia
    • Data curation
      Aamir Hussain, Ferdoushi Ahmed
    • Formal Analysis
      Aamir Hussain, Ferdoushi Ahmed
    • Methodology
      Aamir Hussain, Md Shahin Mia
    • Software
      Aamir Hussain, Md Shahin Mia
    • Visualization
      Aamir Hussain, Ferdoushi Ahmed
    • Writing – original draft
      Aamir Hussain, Md Shahin Mia
    • Project administration
      Md Shahin Mia, Paratta Prommee
    • Supervision
      Md Shahin Mia, Paratta Prommee
    • Validation
      Md Shahin Mia, Paratta Prommee
    • Writing – review & editing
      Ferdoushi Ahmed, Paratta Prommee
Related Articles

  • Industrial development in Saudi Arabia: disparity in growth and development

    Anis AliORCID doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
    Problems and Perspectives in Management Volume 18, 2020         Issue #2         pp. 23-35 Views: 3088 Downloads: 1043 TO CITE АНОТАЦІЯ

    Industrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.

  • The relationship between e-CRM and customer loyalty: a Kenyan Commercial Bank case study

    Eric E. Mang’unyiORCID , Oumar T. Khabala , Krishna K. GovenderORCID Researcher ID doi: http://dx.doi.org/10.21511/bbs.12(2).2017.11
    Banks and Bank Systems Volume 12, 2017         Issue #2         pp. 106-115 Views: 2978 Downloads: 2586 TO CITE АНОТАЦІЯ

    Since customer loyalty is key, especially in the highly competitive commercial banking environment, this article evaluated the effects of features of electronic customer relationship management (e-CRM) on customer loyalty. Using a cross-sectional survey design, data were collected from a convenience sample of customers of a major international Kenyan bank using self-administered questionnaires. The findings based on correlation and multiple regression analyses, revealed that pre-service, during (the) service and post transactional e-CRM features have a positive and significant relationship with loyalty, and that the pre-service and during service features significantly predict loyalty. Thus, enhancing e-CRM practices could be a strategic competitive tool to impact the banks’ relationship with their customers.

  • Why banks should consider ESG risk factors in bank lending?

    Sarwar Uddin AhmedORCID , Samiul Parvez AhmedORCID , Ikramul HasanORCID doi: http://dx.doi.org/10.21511/bbs.13(3).2018.07
    Banks and Bank Systems Volume 13, 2018         Issue #3         pp. 71-80 Views: 2863 Downloads: 1146 TO CITE АНОТАЦІЯ

    Why banks should be concerned about incorporating environmental, social and governance (ESG) criteria in the lending process? What is the motivation? This study aims to find the motives for considering environmental, social and governance (ESG) criteria in bank lending process. A primary survey has been conducted to know the current status and motivation for incorporating ESG factors in investment decisions. Sample comprised 30 private commercial banks (PCBs) operating in Bangladesh. Data collected were analyzed with graphs, descriptive statistics, and regression analysis. Findings of the study indicate that banks are mostly considering basic environmental, social and governance factors set by regulators qualitatively. They are lagging behind in considering the advanced ESG criteria needed for sustainable and efficient credit risk management. Based on motivation for incorporating ESG factors, it was found that banks pioneering in incorporating ESG factors in lending decisions are compensated through better financial performance. Findings of the study are expected to encourage practitioners and policy-makers to take more pragmatic steps to incorporate ESG risk factors quantitatively in lending decision-making process.

Download Preview
Close
Banks and Bank Systems
Banks and Bank Systems