Abstract

This study intends to explore the impact of financial technology adoption on Jordanian bank performance. The study's target population consists of eleven banks listed in the Amman Stock Exchange—ASE, and the study period runs from 2010 to 2021. The hypothesis was tested using a multivariate regression model using STATA software. Return on equity (ROE) was used as a dependent variable to assess bank performance, while financial technology was measured using three independent variables, (digitization (DIG), real-time gross settlements (RTGS), ATMs/branches).  Two additional control variables (bank size and liquidity factor) were utilized in this study. According to the study, incorporating financial technology has significantly improved Jordanian banks' performance across three financial technology dimensions at a significance level of 5%, 1%, and 1% respectively. This finding coincides with the study hypothesis, which argues that the performance of Jordanian banks is positively impacted by the adoption of financial technology. The study reveals that bank size significantly impacts Jordanian banks' performance, while liquidity doesn't significantly affect it, suggesting that bank size influences the relationship between financial technology and bank performance.

 According to the study, Jordanian banks would benefit greatly from increased investments in financial technology and digital services, especially in the larger institutions.

Keywords: Fintech, bank’s performance, digitization (DIG), real-time gross settlements (RTGS).