Differential Impact of Fintech and GDP on Bank Performance: Global Evidence

Using the World Bank Global Findex Database for 91 countries in 2014, 2017, and 2021, we examine whether fintech levels influence bank performance fintech’s interaction with GDP per capita causes differential effects on globally. Since were already very high rich when started providing development statistics estimate AbFintech through regressing by year. is difference between level its fitted values. Then, using multiple regression analyses, investigate impact of worldwide, focusing performance. We find significantly increases performance, primarily less developed countries. Specifically, banks’ ROA least net interest margin 75th percentile Also, decreases cost-to-income ratio countries, while it most The resulting policy implication that banks benefit from investing innovation since they can provide a broader customer base, including formerly unbanked or underbanked customers, more convenient services at lower costs.