Advancing Financial Stability and Performance Through AI and Digital Transformation

Special Issue Editor


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Guest Editor
Department of Economics, Paris School of Business, 75013 Paris, France
Interests: firm performance; bank efficiency; bank stability; technology and financial performance

Special Issue Information

Dear Colleagues,

New technology, digital transformation, and artificial intelligence (AI) contribute to operational efficiency through automation and predictive analytics, improving profitability and decision-making (Zhai et al., 2021). Studies have also shown that AI-driven solutions have been employed in fraud detection and cybersecurity thus enhancing the overall stability of financial institutions by reducing their vulnerability to threats. AI is currently utilized in classification tasks and early warning systems to identify credit risks and fraudulent activities while providing real-time monitoring of the performance of firms or banks (Bahoo et al., 2024). Additionally, new technology in risk management, such as machine learning algorithms, allows for the faster and more accurate detection of financial risks than traditional methods (Butaru et al., 2016).

Positioned within the growing literature on digital transformation, this Issue addresses a critical gap by linking technological innovation directly to financial stability and performance, providing valuable insights for academics, industry professionals, and policymakers.

This Special Issue focuses on the integration of new technology, especially artificial intelligence (AI) within the firm performance, exploring its impact on operational efficiency and financial stability.

References

Bahoo, Salman, Marco Cucculelli, Xhoana Goga, and Jasmine Mondolo. 2024. Artificial intelligence in Finance: a comprehensive review through bibliometric and content analysis. SN Business & Economics 4(2): 23. https://doi.org/10.1007/s43546-023-00618-x

Butaru, Florentin, Qingqing Chen, Brian Clark, Sanmay Das, Andrew W. Lo, and Akhtar Siddique. 2016. Risk and risk management in the credit card industry. Journal of Banking & Finance 72: 218–239. https://doi.org/10.1016/j.jbankfin.2016.07.015

Zhai, Huayun, Min Yang, and Kam C. Chan. 2021. Does digital transformation enhance a firm’s performance? Evidence from China. Technology in Society 68: 101841. https://doi.org/10.1016/j.techsoc.2021.101841

Prof. Dr. Hassan Obeid
Guest Editor

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Keywords

  • artificial intelligence and financial performance
  • financial regulation and technology adaptation
  • digital banking transformation
  • cybersecurity in finance
  • machine learning in finance
  • big data analytics in finance
  • financial technology adoption
  • financial inclusion through technology
  • sustainability in financial services

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Published Papers (1 paper)

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Research

18 pages, 772 KiB  
Article
The Mediating Role of Mobile Banking-Based Financial Inclusion Disclosure on the Relationship Between Foreign Investment and Bank Performance
by Omar Ikbal Tawfik, Mohammed Ali Ahmed and Hamada Elsaid Elmaasrawy
Int. J. Financial Stud. 2024, 12(4), 128; https://doi.org/10.3390/ijfs12040128 - 19 Dec 2024
Viewed by 963
Abstract
Purpose: This study aims to demonstrate the impact of Foreign Investment (FI) on the disclosure of digital Financial Inclusion (FIN) through mobile banking (MB) and the performance of banks, as well as the direct impact of disclosing digital FIN indicators through MB on [...] Read more.
Purpose: This study aims to demonstrate the impact of Foreign Investment (FI) on the disclosure of digital Financial Inclusion (FIN) through mobile banking (MB) and the performance of banks, as well as the direct impact of disclosing digital FIN indicators through MB on bank performance. Design/methodology/approach: This study utilized actual data from all banks listed on the stock exchange in the Sultanate of Oman between 2015 and 2023. The hypotheses were tested using the partial least squares structural equation model (PLS-SEM). Findings: This study revealed a positive influence of FI on both bank performance and the disclosure of FIN indicators through MB. It also identified a negative effect of disclosing FIN indicators through MB on bank performance. However, the mediation of the disclosure of FIN indicators through MB did not show any impact of FI on bank performance. Practical Implications: This study’s results offer valuable insights and recommendations. Firstly, for bank managers, it is crucial to find a balance between expanding MB services and enhancing bank profitability by studying customer trends and preferences in MB usage. This approach will aid in offering banking services that retain existing customers and attract new ones, ultimately boosting bank profitability. Secondly, for policymakers and regulators, this study enhances the understanding of current practices in disclosing FIN indicators through MB, which may prompt a reevaluation of accounting standards related to traditional and digital FIN indicator disclosure. Originality/value: This study is groundbreaking in its examination of the influence of FI on the disclosure of digital FIN indicators through mobile banking. It also represents the first investigation into the indirect impact of FI on banks’ financial performance (FP) through the disclosure of digital FIN indicators via mobile banking. Full article
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