The Impact of Financial technology Companies on the performance and profitability of Financial Institutions in Palestine رسالة ماجستير

Abstract

The aim of the study is to effectively determine The Impact of Financial technology Companies on the performance and profitability of Financial Institutions in Palestine The current era is evolving rapidly under the influence of digital technology. Digital technology is playing a vital role in improving the financial sector around the world. This study aims to discuss the impact of fintech companies on financial institutions in Palestine. The study identified the relationship between financial institutions and fintech companies as well as their future scope. It is unknown how financial inclusion (FI) affects bank profitability, despite the fact that there is research showing that FI has positive consequences on both the economy and society. We carried out a dynamic panel study in Palestine, gathering data from 11 different banks and financial institutions so that we could investigate the link between financial inclusion and the success of the banking industry there. In addition to this, we analysed revenue metrics with the help of two different econometric models over the course of nine years. The generalised method of moments estimator in addition to linear regression models were both utilised by our team. According to the results of the study, the profitability of banks is affected by a variety of factors, including the standard of the products offered, the availability of automated teller machines and physical bank branches, and the efficiency with which customers' needs are met. Despite this, there is not much of an impact that POS terminals have on revenue. Additionally, metrics such as account use and the proportion of loans extended to small and medium-sized businesses have a negligible effect on the profitability of banks. It was found that the ratios of liquidity, cost to income, and nonperforming loans are the most significant bank-specific predictors of profitability. Nonperforming loan ratios were also XIV found to be significant. It is imperative that the authorities in Palestine give financial institutions the attention and priority they deserve by enacting policies that encourage ethical lending practices. The study will employ the thematic analysis technique on qualitative data. In the first step, semi-structured interviews would be conducted with experienced representatives of some selected financial institutions in Palestine. Then in the second step, the thematic analysis will be performed on the data collected through interviews. Thematic analysis will be carried out using NVivo software. Finally, the study concluded in its most important results that lending institutions are the most affected by financial technology companies, as the study targeted a sample of five banks and two lending institutions, and the study recommended the importance of developing the technological environment or investing in existing financial technology companies. the conclusions will be drawn on the impact of FinTech companies on Financial Institutions in Palestine.