The Influence of Fintech on Financial Performance in Banking Sector of Jordan

Abstract Purpose – The purpose of this paper is to analyze the influence of FinTech adoption on financial performance of Jordanian banks Methodology – This study examines a sample of 20 Jordanian banks over the period from 2020 to 2024, covering a total of five years. Financial data were sourced from the Bankscope database, the Amman Stock Exchange, the Association of Banks in Jordan, the Central Bank of Jordan, and the World Bank. Design/methodology/approach – This paper was predicated on the technological adoption model of Jordanian banks performance based on two different estimation approaches for comparison. The data on Jordanian banks on FinTech and financial performance reveal. Findings – Conducting empirical research this study finds robust evidence that Jordanian banks’ FinTech is positively associated with financial performance and has a weak negative relationship. The findings of the study indicate that the financial technology aspects entailing mobile banking, nternet banking, and agency banking did not have a significant effect on the banks’ financial performance while adoption of ATMs had a significant negative impact of the banks’ financial performance. Furthermore, the OLS results, FinTech is significantly correlated with bank performance, and provide insight into banks for using FinTech to increase profits, improve operational efficiency, enhance customer experience, and support innovation in financial services. The findings also highlight how the adoption of financial technologies can help banks reduce operational costs, accelerate transaction processes, and strengthen their competitive advantage in the rapidly evolving financial sector. Originality/value– This paper contributes to the existing literature by presenting findings that provide insight into banks’ efficiency in adopting financial technology (FinTech) and can help banks improve operational costs, accelerate transaction processes, and strengthen their competitive advantage in the rapidly evolving financial sector. The study highlights the relevance of major external events, which influence banks’ adoption of FinTech and shape their responses to technological innovation in the financial sector. The study also provides Jordanian bankers and regulators with a clearer understanding of the role of financial technology and its impact on banks’ ability to improve competitiveness while maintaining financial stability.