Assessing the impact of financial technology on the efficiency of banks: A systematic literature review approach

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Abstract

The sudden expansion in financial technology (FinTech) has altered conventional banking immensely by transforming operations, customer services, and risk management systems. This research therefore employs a systematic literature review (SLR) approach that adheres to Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) standards to assess the influence of FinTech on three bank performance indicators: operating efficiency, risk management, and customer service. A total of 41 peer-reviewed articles, published between 2018 and 2024, were shortlisted from Scopus and Web of Science (WoS). Out of these, 19 utilized frontier efficiency techniques like stochastic frontier analysis (SFA) and data envelopment analysis (DEA). The results indicate that FinTech improves operating efficiency when integrated optimally, as noted by Allen et al. (2022). Yet, outcomes differ by region and type of bank, as some Chinese banks have seen a decline in efficiency (Lee et al., 2023). In risk management, FinTech technologies such as artificial intelligence (AI) have been shown to decrease operational risk (Cheng & Qu, 2023). Customer satisfaction is enhanced further with digital services and personalization (Barbu et al., 2021). Although adoption poses additional risks, the research concludes that FinTech implementation, if managed strategically, will increase bank performance. This review thus offers actionable advice for policymakers and financial institutions to navigate digital transformation.

Keywords: FinTech, Systematic Literature Review, Bank Efficiency, Operational Efficiency, Risk Management, Customer Service, SFA, DEA

Authors’ individual contribution: Conceptualization — X.H. and F.F.S.; Methodology — X.H. and F.F.S.; Formal Analysis — X.H.; Data Curation — X.H.; Writing — Original Draft — X.H.; Writing — Review & Editing — F.F.S.; Visualization — X.H.; Supervision — F.F.S.; Project Administration — F.F.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G21, G28, O33

Received: 09.05.2025
Revised: 14.08.2025; 05.09.2025; 27.10.2025
Accepted: 07.11.2025
Published online: 11.11.2025

How to cite this paper: Huang, X., & Said, F. F. (2025). Assessing the impact of financial technology on the efficiency of banks: A systematic literature review approach. Risk Governance and Control: Financial Markets & Institutions, 15(4), 85–96. https://doi.org/10.22495/rgcv15i4p8