Year: 2025
Type: article
Abstract: In recent years, the South African banking sector has undergone rapid transformations due to innovations in financial technology (Fintech). Regulated by the South African Reserve Bank (SARB), banks are essential for economic growth through capital provision, risk management, and transaction facilitation. Recent Fintech advancements offer more efficient, personalised, and cost-effective solutions, challenging traditional banking models. Against this background, the current study explores the impact of Fintech innovations on banking sector competition and performance, focusing on banks listed on the Johannesburg Stock Exchange (JSE) from 2000 to 2023. Using a panel regression approach, the findings reveal that Fintech enhances competition, particularly through mobile transactions. However, Fintech does not significantly improve bank performance indicators, suggesting traditional structures remain at play. These findings have significant implications for stakeholders in the South African banking sector.
Source: Modern Finance
DOI: 10.61351/mf.v3i2.252
Institution: University of KwaZulu-Natal
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409286063