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Related Experiment Video

Updated: Jul 19, 2025

A Computerized Functional Skills Assessment and Training Program Targeting Technology Based Everyday Functional Skills
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How does fintech affect bank efficiency in Taiwan?

Chang-Sheng Liao1

  • 1School of Economics and Management, Hubei Polytechnic University, Hubei, China.

Plos One
|August 7, 2023
PubMed
Summary

Financial technology (fintech) initiatives impact bank efficiency in Taiwan. While mobile payments show some improvement, overall, fintech adoption does not significantly boost bank performance, suggesting an IT productivity paradox.

Area of Science:

  • Banking and Financial Technology
  • Business and Management

Background:

  • Financial technology (fintech) is increasingly integrated into banking operations.
  • The role of fintech in enhancing bank sustainability and efficiency is a growing area of research.
  • Taiwan's banking sector provides a relevant context for studying fintech's impact.

Purpose of the Study:

  • To investigate the impact of fintech on bank efficiency in Taiwan.
  • To analyze how fintech initiatives influence bank profitability and cost reduction.
  • To determine the extent to which fintech adoption affects overall bank performance.

Main Methods:

  • Utilized parametric and non-parametric analytical approaches.
  • Examined data from Taiwan's banking sector spanning 2007 to 2020.

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  • Focused on fintech-related initiatives, including mobile payment systems.
  • Main Results:

    • Fintech initiatives demonstrate an effect on bank efficiency, with potential for direct or indirect improvements.
    • Mobile payment systems, a specific fintech application, were found to enhance bank efficiency to a limited degree.
    • Overall, the study indicates that fintech adoption has not led to significant improvements in bank efficiency.

    Conclusions:

    • Fintech's current impact on bank efficiency in Taiwan is not substantial.
    • The findings suggest a potential "productivity paradox" related to IT investments in the banking sector.
    • Further research is needed to fully understand fintech's long-term role in bank sustainability and efficiency.