The financial and sustainability impact of fintech on Indian deposit money institutions: A study of the last decade

Abstract

The study was related to finding out how the financial results of Indian banks are affected by Artificial intelligence. Secondary data from 2017 to 2022 was taken from the Data release of the Reserve Bank of India (Monthly Bank wise ATM/POS/NEFT/Mobile banking) and for Return on Assets, the website of the Indian Banking Association was used. The validity of the data was assessed using a normalcy test, and the Controlled variables passed from the multicollinearity statistics tests and Partial least square (PLS) regression. Results depict that ATM, Mobile banking, and NEFT have a considerable impact on Return on assets (ROA). While point of sale (POS) services have negligible impact. To improve bank performance, the study suggested that Indian deposit money institutions should teach their customers more about how to utilize National Electronic Fund Transfer (NEFT), Mobile banking, and POS, as well as boost the number of Automatic Teller Machines (ATM) withdrawals. Even the different retail outlets must increase options to pay money so that the customers can pay as they want, and POS gets increased. Policymakers got a fair idea from this study regarding how to draft policies relating to fintech and improve the environment or social sustainability.

Keywords

• fintech
• cashless transactions
• digital banking industry
• multicollinearity statistics
• partial least square regression (pls)
• sustainability