Chapter 21: Financial Technology and Bank Risk: A Cross Country Study

Financial technology has been growing significantly over the last few years all around the world. In this chapter, we study the impact of financial technology on the risk and performance of commercial banks as the incumbent in the industry. The authors combine a cross-country dataset resulting in 336 country-year observations. The authors find that financial technology, more particular the growing of adoption in mobile money, has been considered to increase the risk of banks. However, the authors do not find any evidence that the performance of commercial banks has significantly eroded by the presence of financial technology.