The effect of financial technology on the sustainability of banks in the Gulf Cooperation Council countries
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Aws AlHares 
, Abdulrahman Dahkan , Tarek Abu-Asi
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
The purpose of this study is to investigate the influence that financial technology (FinTech) companies have on the soundness of bank finances. Using a sample of 480 bank-year observation from an emerging market of the Gulf Cooperation Council (GCC) over the period of 2006–2021, we find that the development of FinTech firms over time increases bank financial stability. The study used the Refinitiv Eikon and Fintch Connect databases to measure variables. When we conduct sub-sample analyses by bank size, bank type, and level of corporate governance, we find additional evidence that supports the hypothesis that FinTech companies have an effect on the financial stability of banks. The findings are consistent with a wide variety of model specifications, indices of financial stability, and applications of FinTech. This study is unique and contributes to the extant literature by offering new evidence on the effect of FinTech on the sustainability of banks in GCC.
Keywords: Bank, Financial Technology, Gulf Cooperation Council, Sustainability, Bank Size, Corporate Governance
Authors’ individual contribution: Conceptualization — A.A., A.D., and T.A.-A.; Methodology — A.A. and A.D.; Validation — A.D. and T.A.-A.; Formal Analysis — A.A. and T.A.-A.; Investigation — A.A.; Resources — A.D. and T.A.-A.; Data Curation — A.A., A.D., and T.A.-A.; Writing — Original Draft — A.A., A.D., and T.A.-A.; Writing — Review & Editing — A.D. and T.A.-A.; Supervision — A.A.; Project Administration — A.D. and T.A.-A.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: G21, G34, G41, N25, O16, Q56
Received: 26.09.2022
Accepted: 26.12.2022
Published online: 28.12.2022
How to cite this paper: AlHares, A., Dahkan, A., & Abu-Asi, T. (2022). The effect of financial technology on the sustainability of banks in the Gulf Cooperation Council countries [Special issue]. Corporate Governance and Organizational Behavior Review, 6(4), 359–373. https://doi.org/10.22495/cgobrv6i4sip16
