Is FinTech Catalyst or Constraint for Banking Performance?

The objective of this research was to rigorously examine the influence of FinTech (Financial Technology) on multiple dimensions of bank performance in the Palestinian context. These dimensions included marketing efficacy, financial robustness, operational efficiency, and strategic competitiveness. Utilizing a quantitative methodology, the study administered a series of 80 questionnaires, collected via a convenience sampling technique. Subsequently, the gathered data were subjected to advanced statistical analysis through Partial Least Squares Structural Equation Modeling (PLS-SEM), facilitated by the use of the Smart-PLS software suite. Statistical observations revealed that all supposed hypotheses achieved significance at the alpha level of 0.01. The analysis uncovered a statistically significant association between the use of FinTech technologies and the various performance indicators of Palestinian banks. The study found a positive relationship between the deployment of FinTech solutions and the performance metrics, with FinTech explaining 18.6% of the variation in marketing effectiveness, 25.8% in financial robustness, 26.2% in operational efficiency, and 35.0% in strategic competitiveness. This study is unique in its nature because it is the first to conduct an empirical analysis of the influence of FinTech on banking performance in the Palestinian context. This research distinctively investigates FinTech's impact on bank performance in Palestine, revealing significant positive effects across various performance metrics. It uniquely contributes to scholarly discourse by quantitatively assessing FinTech's influence in a previously unexplored context, offering insights for academics, practitioners, and policymakers.