Financial Technology (FinTech) and the performance of commercial banks in Nordic countries
Zinakova, Taisiia (2020)
Zinakova, Taisiia
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020052212926
https://urn.fi/URN:NBN:fi:amk-2020052212926
Tiivistelmä
In the modern world, Financial Technology (or FinTech) is integrating into the operations of commercial banks. Nordic banks have also started to employ FinTech in their operations. However, as FinTech is a relatively new phenomenon, its impact on banking activity is not well-researched yet. Thus, the objective of the present study was to develop an understanding of FinTech as a phenomenon, study its functional mechanism and explore its impacts on the performance of Nordic commercial banks. Furthermore, the author aimed to study how the performance of commercial banks is measured. This resulted in questioning and researching the transformation of the FinTech’s era performance measures in the banking sector in order to investigate whether FinTech makes an impact.
A mixed-method research approach shaped the case study research strategy. The data collected utilized a qualitative approach in which four semi-structured interviews with bank employees and start-up developers were conducted. In addition to this, the quantitative approach included the collection of secondary data concerning three Nordic commercial banks for the period from 1999 to 2018. All the data were collected from the Helsinki stock exchange official databases and the banks’ annual reports.
By understanding FinTech as a phenomenon and studying its functional mechanism in the context of banking activity, the author has carefully explored its impacts on the performance of Nordic commercial banks. Furthermore, comprehension of how the performance of commercial banks can be measured, allowed the author to subsequently question the relevance of the conventional performance measures and provided insights into the transformation of the FinTech’s era performance measures in the banking sector. Recommendations for the study’s future direction were provided, along with suggestions for further research. These include using more reliable and extensive samples of data or narrowing the research down to certain financial components in a region or certain banking stakeholders and activities.
A mixed-method research approach shaped the case study research strategy. The data collected utilized a qualitative approach in which four semi-structured interviews with bank employees and start-up developers were conducted. In addition to this, the quantitative approach included the collection of secondary data concerning three Nordic commercial banks for the period from 1999 to 2018. All the data were collected from the Helsinki stock exchange official databases and the banks’ annual reports.
By understanding FinTech as a phenomenon and studying its functional mechanism in the context of banking activity, the author has carefully explored its impacts on the performance of Nordic commercial banks. Furthermore, comprehension of how the performance of commercial banks can be measured, allowed the author to subsequently question the relevance of the conventional performance measures and provided insights into the transformation of the FinTech’s era performance measures in the banking sector. Recommendations for the study’s future direction were provided, along with suggestions for further research. These include using more reliable and extensive samples of data or narrowing the research down to certain financial components in a region or certain banking stakeholders and activities.