The effect of FinTech on banks’ performance and accountability in Tunisia: An empirical analysis

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Abstract

The development of financial technology (FinTech) systems by banks to support businesses helps them meet community needs, support the national economy, and promote job creation and investment (Almashhadani & Almashhadani, 2023). The main goal is to determine the impact of FinTech on the performance of Tunisian banks, in particular, the impact of FinTech on the profitability of 12 Tunisian banks for the period from Q2 2020 to Q3 2022, collected from quarterly financial statements. The generalized least squares (GLS) method is used to estimate the panel models. On the other hand, to improve the credibility of the results, several generalized method of moments (GMM) estimation robustness tests were carried out to confirm the GLS results. The analysis used the return on assets (ROA) as an index to determine the level of profitability. The result of this study showed that bank profitability was significantly affected by FinTech services, including payment technology and artificial intelligence (AI). The implications of this analysis are reflected in better-informed decisions on the part of investors. This gives inventors and innovators a chance to emerge, as banks seek to improve their efficiency through FinTech (Dasilas & Karanović, 2023; Phama et al., 2024). Banks will be encouraged to use FinTech, and the more customers they attract, the higher the bank’s productivity and profit will be. This study is one of the first conducted in Tunisia. It has contributed to the enrichment of research on FinTech and its impact on bank efficiency.

Keywords: FinTech, Payment Technology, Artificial Intelligence, Banking Profitability, Tunisian Banks

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: C22, G21, Z19

Received: 23.09.2024
Revised: 09.01.2025; 20.03.2025; 24.04.2025
Accepted: 16.05.2025
Published online: 19.05.2025

How to cite this paper: Ben Abdallah, M. (2025). The effect of FinTech on banks’ performance and accountability in Tunisia: An empirical analysis. Reporting and Accountability Review, 2(1), 15–20. https://doi.org/10.22495/rarv2i1p2