The Impact of Fintech on Credit Risk of Banks: Evidence from the Tehran Stock Exchange
Subject Areas : Management of Technology and production
Parvin Sadri
1
*
,
Milad khorsandi
2
1 - Department of Accounting, Islamic Azad University, Saveh, Iran
2 - department of accounting, Saveh branch, Islamic Azad University, Saveh, Iran
Keywords: Fintech, Credit Risk, Environmental Factors, Financial Factors, Interaction Management,
Abstract :
The Rise of Banking Fintechs and Their Impact on Offering New Financial Services and Innovating Traditional Financial Services, Through a Wide Spectrum of Technological Applications Across All Consumer Product Value Chain Sectors, Challenging the Dominance of Traditional Banks in the Financial Industry. Fintech represents a new financial industry utilizing technology to enhance financial activities. Credit risk, a critical dimension of resource allocation in the financial system, is a primary concern for banks. This study aims to explore the influence of bank fintechs on credit risk. Data was gathered through a questionnaire distributed to heads, deputies, and credit specialists actively engaged in the third quarter of 2023. Statistical analysis of 132 responses reveals that environmental, organizational, financial, and interaction management factors within fintech significantly and inversely affect credit risk. This indicates that fintech development reduces credit risk levels in commercial banks, with fintech applications playing a pivotal role in this reduction
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