scholarly journals Fintech Innovations: The Impact of Mobile Banking Apps on Bank Performance in Vietnam

2021 ◽  
Vol 8 (4) ◽  
pp. 391-401
Author(s):  
Tam T. Le ◽  
Ha N. Mai ◽  
Duong T. Phan
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Balance Sheet ◽  
Money Market ◽  
Mobile Technologies ◽  
Bank Performance ◽  
Mobile Banking ◽  
Consumer Loans ◽  
Small Banks ◽  
The Impact

This paper is aimed at analyzing the impact of FinTech innovations on bank performance across mobile banking applications in Vietnam. Using the longitudinal panel data from 2010-2019 (with 220 observations) of 22 local commercial banks in Vietnam. Multivariate panel regression is chosen to experimentally test the research hypotheses. This research paper is one of the first quantitatively investigating the effects of fintech innovation (mobile banking apps) on bank performance in Vietnam. In addition, studies on financial indicators are shown quite comprehensively in the period 2010-2019. Our empirical study has shown the following results: (i) FinTech innovations’ positive impact on bank performance in Vietnam; (ii) Banks’ adoption of mobile banking technologies positively impacted banks’ fee-based income, consumer loans and money market deposits; (iii) The effect of mobile technologies on financial performance was much stronger for small banks than large banks; (iv) As for the balance sheet liabilities aspect, the money market fund of small banks is positively affected by the mobile banking application; (v) In terms of balance sheet assets, consumer loans by small banks are positively affected by the mobile banking application while large banks are not; (vi) GDP per capita has a positive effect on the ROE of both small and large banks; (vii) Mobile phone penetration rates positively affected bank ROA and ROE and its effect was larger on small banks. From the findings, key recommendations to Vietnamese commercial banks to improve bank performance in the context of an increasingly technological development are to: (1) Increase investment in mobile banking apps and the entire mobile banking technology; (2) Increase investment in financial technology, focus more on mobile banking users and the entire mobile banking services; (3) Take advantage of the technical support and consultancy of international organizations and bilateral cooperation with other countries' authorities in management of Fintech businesses; (4) Learn from commercial banks in other countries to draw experiences, thereby develop in own context. (5) Training human resources for the finance and banking industry to not only have professional knowledge and ability to analyze data, but also have to be proficient in operating digital technology. Keywords: Fintech Innovations, mobile banking apps, bank performance, Vietnam, theories of Technological Innovation.

scholarly journals Effect of Bank Innovations on Profitability and Return on Assets (ROA) of Commercial Banks in Lebanon

2017 ◽  
Vol 9 (4) ◽  
pp. 35 ◽  
Author(s):  
Hiyam Sujud ◽  
Boutheina Hashem
Keyword(s):  
Social Sciences ◽  
Commercial Banks ◽  
Positive Impact ◽  
Credit Cards ◽  
Internet Banking ◽  
Mobile Banking ◽  
Significance Tests ◽  
Return On Assets ◽  
Point Of Sale ◽  
The Impact

The purpose of this research is to study bank innovations in the field of mobile banking, debit and credit cards, automated machines (ATM), internet banking, point of sale terminals (PST) and electronic funds transfer (EFT). It purposely looked into those innovations in relation to their influence on profitability and return on assets (ROA) of Lebanese commercial banks. Data was collected through a research questionnaire, and statistical analysis was done using the Package of Social Sciences Software (SPSS). The results revealed that there is a significant positive impact of bank innovations on profitability and return on assets of Lebanese commercial banks and significance tests also showed that the impact was statistically significant. Based on the results of the study, it can be concluded that bank innovations affect profitability and return on assets (ROA) of commercial banks in Lebanon positively.

scholarly journals The impact of service delivery technology on bank performance: Evidence in Vietnam

2020 ◽  
pp. 38-42
Author(s):  
Vo Hoang Diem Trinh, Tran Thi Thuy Ngan Vo
Keyword(s):  
Service Delivery ◽  
Positive Impact ◽  
Internet Banking ◽  
Bank Performance ◽  
Mobile Banking ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Sample Data ◽  
The Impact ◽  
Delivery Technology

This study investigates the impact of service delivery technology on bank performance by using the sample data of 21 Vietnamese commercial banks over the period 2007-2019. The study uses return on equity (ROE) and net interest margin (NIM) as a dependent variable representing bank performance. A set of variables including mobile banking (MB), internet banking (IB), and implementation degree of ATMs functions as a proxy for service delivery technology. The research results indicate that there is a significant positive impact of mobile banking (MB) and online banking (IB) on bank performance. In addition, this study has not found an impact on ATM implementation for bank performance.

scholarly journals The Impact of Digital Transformation on Performance: Evidence from Vietnamese Commercial Banks

2022 ◽  
Vol 15 (1) ◽  
pp. 21
Author(s):  
Trang Doan Do ◽  
Ha An Thi Pham ◽  
Eleftherios I. Thalassinos ◽  
Hoang Anh Le
Keyword(s):  
Commercial Banks ◽  
Quantitative Research ◽  
Business Performance ◽  
Positive Impact ◽  
Digital Transformation ◽  
Policy Implications ◽  
Bank Performance ◽  
Long Time ◽  
The Impact

The role of digital transformation in creating value for commercial banks has been interesting to researchers for a long time. While many commercial banks have significantly investigated digital transformation, researchers and managers have still met many difficulties examining the distribution of digital transformation to business performance. This paper aims to evaluate the impact of digital transformation on Vietnamese commercial banks’ performance by different sizes, from there proposing policy implications of digital transformation to improve the banking performance. To achieve this goal, we used a quantitative research method. Specifically, we applied the GMM system (SGMM) of Blundell and Bond for the data of 13 joint-stock commercial banks in Vietnam in the period from 2011 to 2019. Then Bayesian analysis is performed to test the robustness of the models estimated by the SGMM method. The result shows that the digital transformation has a positive impact on the performance of Vietnamese commercial banks. Besides, we also find that the larger the banks, the greater the positive impact of digital transformation on bank performance. Therefore, the efficiency of digital transformation depends on a bank scale.

To list or not to list, that is the question: new evidence from the performance of Vietnamese commercial banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tuan Quoc Le ◽  
Ha Ngan Duong ◽  
Phuong Thanh Nguyen
Keyword(s):  
Initial Public Offering ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Positive Impact ◽  
Policy Implications ◽  
Bank Performance ◽  
Data Set ◽  
Going Public ◽  
Content Type ◽  
The Impact

Purpose This paper aims to investigate the decisions of listing for Vietnamese banks and the impact of listing on bank performance. Design/methodology/approach A longitudinal data set of 30 commercial banks in the period of 2006–2018 with various univariate and multivariate tests is used. Findings This study found that listing is positively associated with bank profitability. The results are consistent even after the control for potential endogeneity problems by propensity score matching methodology and Heckman selection bias models. Further analysis suggests some new alternative channels for the positive impact, namely, the increased quality of information disclosure, technological development and income diversification of commercial banks after listing. Practical implications Hence, this paper provides recommendations and policy implications for regulatory bodies regarding the listing of commercial banks in Vietnam. Originality/value The contributions to the literature are three-folds. First, this study contributes to a strand of literature on the impact of going public [initial public offering (IPO)/listing] of financial institutions on their performance. While the literature on non-financial firm performance post-going public is ample, few have directly considered the IPO/listing of banks and other financial institutions. Second, in further looking at the impact of listing on bank performance, this study also sheds some light on the new possible channels of the effect and provides evidence of new channels. Then, last but not least, the case of Vietnam could possibly yield interesting results for a transitory stock market. From the evidence, the recommendations and policy implications for a listing of Vietnamese banks are provided.

Banking regulation - burden or blessing?

2019 ◽  
Vol 11 (4) ◽  
pp. 548-562 ◽  
Author(s):  
Kim Abildgren
Keyword(s):  
Commercial Banks ◽  
Natural Experiment ◽  
Positive Impact ◽  
Causal Effect ◽  
Balance Sheet ◽  
Banking Regulation ◽  
Content Type ◽  
Savings Banks ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of regulation on previously unregulated banks’ balance-sheet growth using the 1880 Danish Savings Bank Act as a natural experiment. With the Act, Danish savings banks became, for the first time, subject to regulation and supervision whereas commercial banks continued as unregulated institutions. Design/methodology/approach The main elements of the Act focussed on supervision and provisions to improve information transparency. The paper estimates the impact of the Act on the balance-sheet growth of Danish savings banks using bank-level panel data and a difference-in-differences approach. Findings The paper finds no indications that the Act had a negative effect on the balance-sheet growth of savings banks compared to commercial banks in the short run. Furthermore, there are indications of a positive effect after a couple of years. This suggests that regulation is not always a burden for the regulated institutions and might even have a positive impact on their business activity. Originality/value This paper is the first study using the introduction of banking supervision and regulation in the 1800s as a natural experiment to evaluate the causal effect of regulation on the balance-sheet growth of previously unregulated financial intermediaries.

scholarly journals Forign Ownership and Bank Performance: Evidence From Indonesia

2017 ◽  
Vol 8 (1) ◽  
Author(s):  
Amarilla Hapsari ◽  
Rofikoh Rokhim
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Positive Impact ◽  
Bank Performance ◽  
Industrialized Countries ◽  
Foreign Investors ◽  
Banking Market ◽  
The Government ◽  
The Impact

The main objective of this study is to examine the impact of foreign entry on the domestic bank-ing market’s profitability and overhead costs as financial sector FDI is a relatively new phenom-enon and typically takes the form of banks in industrialized countries establishing branches and facilities in developing countries. A panel data covering the period from 2000 to 2012 is set based on the financial data from 82 commercial banks, which operated in Indonesia as of De-cember 2012 and represented 92 percent of the commercial banks’ total assets. The results of this study are expected to complement the existing collection of studies on the foreign penetra-tion in the Indonesian banking industry, as to date there has been limited study of the impact of foreign ownership on bank performance in Indonesia. From a policy perspective, this study draws some conclusions which clarify the impacts of foreign penetration on banking industry. The government should continue to open the banking market up to foreign investors if they are proven to bring a positive impact, and should act conversely if they are proven to have an adverse impact on the local banking sector.

The performance of Islamic banking among the commercial banks in Malaysia

2008 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Samsuwatd Zuha Mohd Abbas ◽  
Norli Ali ◽  
Aminah Mohd Abbas
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Significant Difference ◽  
The Mean

This paper examines the accounting performance of the Islamic banking among (??) commercial banks in Malaysia. A total of 18 commercial banks which include 4 Islamic banks are selected as samples covering the period of 2000 - 2006. Accounting performance is measured by the return on assets (ROA) and return on equity (ROE). The objective of the study is (1) to determine whether Islamic banking performance is at par with the conventional banking and (2) to investigate whether the type (Islamic or conventional bank) and age of bank influence the performance. Result of the independence t-test of the study shows that there is no significant difference in the performance of the Islamic and the conventional banking in Malaysia although the mean score for conventional banking is higher. The regression results show that the age of banks has a positive impact on the bank performance where as none of the types of banks influence performance.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

scholarly journals Impacts of Monetary Policy on Commercial Banks’ Profits: The Case of Vietnam

2017 ◽  
Vol 13 (8) ◽  
pp. 32
Author(s):  
Thanh Nhan Nguyen ◽  
Ngoc Huong Vu ◽  
Ha Thu Le
Keyword(s):  
Monetary Policy ◽  
Commercial Banks ◽  
Positive Impact ◽  
Monetary Policies ◽  
Significance Level ◽  
Doing Business ◽  
Panel Data Regression ◽  
Banking Market ◽  
Data Regression ◽  
The Impact

This paper mainly concentrates on examining the impact of monetary policy on commercial banks’ profit in Vietnam by using panel data regression. In our study, the data is collected from 20 commercial banks which were doing business in Vietnam’s banking market, ranging from 2007 to 2014 in annually frequency. Monetary base (MB), discount rate (DIS) and required reserve ratio (RRR) are used as proxies for monetary policy. Profit before tax (PROFIT) is used to represent commercial banks’ performance. The results show that there is a positive relationship between banks’ profits and monetary policies. Among those chosen variables representing SBV’s monetary policy, only MB has a significant positive impact on bank’s profit at the significance level of 10%. On this premise, the study recommends that MB should be one of the variables in the center of being concerned in the SBV’s policies regarding the banking performance and stability.

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