Chapter 11: Does Financial Technology's Role Impact Achieving a Competitive Advantage for Commercial Banks?

Over the last two decades, the rapid growth of financial technology has become an important topic discussed by many scholars and researchers. This is due to the high capacity of fintech to provide dynamic bank services and obtain sustainable finance. This study aims to investigate the impact of financial technology on achieving a competitive advantage for Jordanian commercial banks. The main focus of this research is on the four dimensions of financial technology and four dimensions of competitive advantage. To accomplish these aims, the researcher used a 24-item questionnaire and distributed it among the sample of the study, which was chosen randomly and consisted of 300 employees to collect data. The responses were analyzed using descriptive and inferential statistical methods, personal interviews, and field observations. The study used the Statistical Modeling Analysis Research Tools – Partial Least Squares (SMART PLS) statistical program to analyze the data and examine the impact of independent variables on dependent variables. After deep exploration and analysis, the findings revealed a strong positive connection between financial technology and banking by utilizing appropriate methods and resources. Moreover, this study implies that offering financial services in accordance with current knowledge, skills, and expertise can aid in achieving a competitive advantage. Therefore, Jordanian banks must take the lead from leading top banks and employ effective information technology management to improve their competitiveness. This study offers valuable insights into how Jordanian banks can obtain a competitive edge by using financial technology. Future studies should consider other aspects of financial technology inclusion, especially from a management point of view.