Bank efficiency in the digital age

Ally, Omary.J; Kulindwa, Y; Mataba, Lucas

dc.contributor.author	Ally, Omary.J
dc.contributor.author	Kulindwa, Y
dc.contributor.author	Mataba, Lucas
dc.date.accessioned	2025-04-13T06:22:25Z
dc.date.available	2025-04-13T06:22:25Z
dc.date.issued	2025
dc.identifier.citation	Ally, O. J., Kulindwa, Y., & Mataba, L. (2025). Bank efficiency in the digital age: The role of financial technology in Tanzanian banks. Modern Finance, 3(1), 1-24.	en_US
dc.identifier.uri	http://repository.mocu.ac.tz/xmlui/handle/123456789/1910
dc.description	Research article	en_US
dc.description.abstract	The global rise of financial technology offers opportunities and challenges for banking businesses, including Tanzanian banks. This study examines the influence of a bank's FinTech index on the efficiency of 30 Tanzanian commercial banks categorized as large, medium, and small from 2010–2021. Using panel data and a two-step Generalized Method of Moments (GMM) estimator, the study finds that the FinTech index measuring banks' financial technology development significantly enhances efficiency across all banks, with the largest impact on large banks due to their high financial technology development. However, medium and small banks face challenges in financial technology development, resulting in a negative relationship between the FinTech index and the efficiency of banks. The study emphasizes the need for regulatory frameworks supporting financial technology integration in the core banking systems, especiallyThe global rise of financial technology offers opportunities and challenges for banking businesses, including Tanzanian banks. This study examines the influence of a bank's FinTech index on the efficiency of 30 Tanzanian commercial banks categorized as large, medium, and small from 2010–2021. Using panel data and a two-step Generalized Method of Moments (GMM) estimator, the study finds that the FinTech index measuring banks' financial technology development significantly enhances efficiency across all banks, with the largest impact on large banks due to their high financial technology development. However, medium and small banks face challenges in financial technology development, resulting in a negative relationship between the FinTech index and the efficiency of banks. The study emphasizes the need for regulatory frameworks supporting financial technology integration in the core banking systems, especially for smaller and medium banks. It highlights the importance of collaboration and risk management to enhance bank efficiency and financial stability for smaller and medium banks. It highlights the importance of collaboration and risk management to enhance bank efficiency and financial stability	en_US
dc.publisher	Modern Finance Institute	en_US
dc.subject	Financial technology	en_US
dc.subject	efficiency	en_US
dc.subject	Tanzanian	en_US
dc.subject	commercial banks	en_US
dc.subject	FinTech index	en_US
dc.title	Bank efficiency in the digital age	en_US
dc.title.alternative	The role of financial technology in Tanzanian bank	en_US
dc.type	Article	en_US