Browsing by Author "Gizachew Tefera"

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    The Impact of Fintech on Financial Performance of Banks in Ethiopia, the Case of Selected Commercial Banks
    (A.A.U, 2025-05-20) Gizachew Tefera; Abebe Y. (PhD)
    This study explores the impact of fintech adoption on the financial performance of selected Ethiopian commercial banks, focusing on profitability, operational efficiency, customer satisfaction, competitiveness, loyalty, and risk management. Based on financial and customer data from five medium-sized banks between 2019 and 2024, the findings reveal that internet banking adoption has the strongest positive effect on profitability (ROA and ROE), while mobile banking significantly expands customer reach and engagement, though it incurs short-term implementation costs. Operational efficiency improved modestly due to streamlined processes, reflected in a moderate reduction in the cost-to-income ratio. Fintech also enhanced customer satisfaction through improved accessibility and convenience, leading to stronger customer loyalty and retention. Market competitiveness showed slight gains, particularly among digitally active banks leveraging fintech for broader outreach. Importantly, fintech adoption improved risk management by supporting fraud detection, enhancing credit risk profiling, and enabling real-time data analysis. These results suggest that strategic fintech integration can significantly strengthen the financial and operational performance of banks in emerging markets like Ethiopia. Keywords: Fintech, financial performance, commercial banks, Ethiopia, mobile banking, internet banking, digital payments, financial inclusion.