EXAMINING FINTECH INVESTMENTS' EFFECTS ON NAMIBIA'S TOP FOUR

BANKS' FINANCIAL PERFORMANCE: A CASE STUDY.

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL/ FULFILMENT

OF THE REQUIREMENTS FOR THE DEGREE OF

POSTGRADUATE DIPLOMA IN BUSINESS ADMINISTRATION

OF THE UNIVERSITY OF NAMIBIA

BY

HAFENI TULONGENI HAMUKOTO

Name of student

201055031
Student Number

JUNE 2024
Month and year

Supervisor: DR. ALBERT KAMUINJO

Table of Contents
1. INTRODUCTION ................................................................................................................................ 1
1.1 Orientation to the Study .............................................................................................................. 1
1.2 Statement of the Problem ................................................................................................................ 2
1.3 Research Questions ...................................................................................................................... 3
1.5 Significance of the Study.............................................................................................................. 3
1.6 Limitation of the Study .................................................................................................................... 4
1.7 Delimitations of the Study ............................................................................................................... 4
2. LITERATURE REVIEW/THEORETICAL FRAMEWORK .................................................... 5
3. RESEARCH METHODOLOGY ................................................................................................... 9
3.1 Research Design............................................................................................................................ 9
3.2 Population of the Study ............................................................................................................. 10
3.3 Sampling Procedures ................................................................................................................. 10
3.4 Research Instruments ................................................................................................................ 11
3.5 Data collection methods/procedures ......................................................................................... 12
3.6 Data Analysis .................................................................................................................................. 14
4 RESEARCH ETHICS ....................................................................................................................... 15
5 REFERENCES ................................................................................................................................... 16
 1. INTRODUCTION
1.1 Orientation to the study
The global banking sector is experiencing a profound transformation driven by the rapid adoption and
integration of financial technology (FinTech). FinTech refers to the use of technology to improve and
automate the delivery and use of financial services, making financial transactions more efficient and
accessible (Chen, You, & Chang, 2021). This digital revolution is not only reshaping traditional banking
operations but also redefining customer experiences and expectations (Mbama & Ezepue, 2018).

Namibian banks, similar to their global counterparts, are investing heavily in FinTech to enhance their
operational efficiency, customer satisfaction, and overall financial performance (Hamukwaya, 2019). These
investments include the development of digital banking platforms, mobile banking apps, and online customer
service solutions, which aim to provide customers with more convenient and innovative banking services
(Zhao et al., 2022). The primary focus of this study is to explore the specific impact of these FinTech
investments on the financial performance of the top four commercial banks in Namibia: First National Bank
(FNB) Namibia, Nedbank Namibia, Standard Bank Namibia, and Bank Windhoek.

The literature on FinTech's impact on banking performance is extensive but presents several gaps and
controversies. For instance, studies such as those by Hafez et al. (2023) and Kiilu (2018) have demonstrated
positive correlations between FinTech adoption and improved financial performance, citing increased
efficiency and customer satisfaction as critical factors. However, other studies highlight potential risks, such
as increased market volatility and financial instability due to the rapid and sometimes unregulated growth of
FinTech innovations (Stankevičienė & Kabulova, 2022).

A significant concern within the literature is the dual-edged nature of FinTech's impact. On one hand, FinTech
innovations can enhance operational efficiency and customer experiences, leading to higher profitability and
market share (Baker et al., 2023). On the other hand, the integration of new technologies can introduce new
risks, such as cybersecurity threats and regulatory challenges, which can potentially destabilize financial
institutions (Stankevičienė & Kabulova, 2022).

Despite the growing body of research, there remains a significant gap in understanding the specific impacts
of FinTech investments on banks in emerging economies like Namibia. Most existing studies focus on
developed markets, leaving a dearth of empirical evidence on how these technologies affect financial
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 performance in different economic contexts (Paavo, 2018). This study aims to fill this gap by providing a
comprehensive analysis of FinTech's impact on Namibian banks.

Several critical questions remain unanswered in the current literature:

• What specific types of FinTech investments are most beneficial for improving the financial
performance of banks in emerging markets?
• How do these investments affect different aspects of financial performance, such as profitability,
market share, and operational efficiency?
• What regulatory frameworks are necessary to mitigate the risks associated with rapid FinTech
adoption?

This study is particularly worth researching due to the strategic importance of the banking sector in Namibia's
economy and its role in promoting financial inclusion (Hamukwaya, 2019). Understanding how FinTech
investments impact financial performance can provide valuable insights for bank executives, policymakers,
and investors. Moreover, this research will contribute to the broader discourse on digital transformation in
emerging economies, offering lessons and implications that could be applied to other similar contexts
(Bashayreh & Wadi, 2021).

By investigating the relationship between FinTech investments and the financial performance of Namibia's top
banks, this study aims to provide a nuanced understanding of the opportunities and challenges posed by digital
transformation in the banking sector. It seeks to bridge the knowledge gap in existing literature and offer
strategic insights that can help optimize technology investments and enhance financial resilience in the face of
ongoing digital disruption.

1.2 Statement of the problem

The specific impact of FinTech investments on the financial performance of Namibia's top four banks—FNB
Namibia, Nedbank Namibia, Standard Bank Namibia, and Bank Windhoek—remains under-explored. This
gap in empirical evidence hinders optimal resource allocation and strategic decision-making within these
institutions. Key concerns include understanding how different types of FinTech innovations, such as digital
banking platforms and mobile applications, influence profitability, operational efficiency, and market share.

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The purpose of this study is to investigate the relationship between FinTech investments and the financial
performance of Namibia's top four commercial banks. The study aims to evaluate the impact of FinTech
solutions on key financial metrics, including return on assets (ROA), return on equity (ROE), and net profit
margins, and to determine which specific FinTech innovations contribute most significantly to enhancing
financial performance. By addressing these, the study will provide valuable insights for bank executives and
policymakers, contributing to more informed decisions regarding FinTech investments and enhancing the
overall financial health of Namibia's banking sector.

1.3 Research questions

1.3.1 What are the effects of FinTech investments on the financial performance of
Namibia's top four commercial banks?
1.3.2 Which types of FinTech investments have the most significant impact on the
financial performance of these banks?
1.4 Hypothesis of the study (where applicable)
1.4.1 FinTech investments positively affect the financial performance of Namibia's top four
commercial banks. This hypothesis is grounded in the expectation that technological
advancements and digital banking innovations enhance operational efficiency,
customer satisfaction, and overall profitability (Chen, You, & Chang, 2021).

1.5 Significance of the study

The study's significance lies in bridging the knowledge gap about the impact of FinTech investments on
Namibia's top four commercial banks' financial performance. It will contribute to the existing literature by
providing empirical evidence from an emerging economy context, enriching the global discourse on digital
banking and financial technology. For bank executives and policymakers, the findings will offer strategic
guidance on resource allocation towards FinTech, helping enhance profitability, operational efficiency, and
customer satisfaction. Smaller financial institutions can also benefit by adopting best practices identified in
the study to improve their efficiencies and financial stability.

This research will promote financial inclusion and economic development by enabling banks to offer more
accessible and innovative services, reaching underserved populations and fostering economic participation.
Overall, the study provides valuable insights that enhance academic understanding, offer practical benefits to

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 financial institutions of all sizes, and contribute to societal well-being by promoting financial inclusion and
economic growth.

1.6 Limitation of the study

The study encountered several limitations that affected its completion. Firstly, access to comprehensive and
up-to-date financial data from Namibia's top four banks—FNB Namibia, Nedbank Namibia, Standard Bank
Namibia, and Bank Windhoek—was challenging due to confidentiality issues and limited public disclosures.
To address this, the researcher used publicly available annual reports, financial statements, and industry
publications to gather necessary data.

Secondly, the rapid evolution of FinTech presented a challenge in ensuring the study's relevance and accuracy,
as technological advancements and regulatory changes could quickly render findings outdated. This was
mitigated by focusing on broader trends and fundamental impacts of FinTech investments, which are more
likely to remain relevant over time.

Logistical constraints, such as limited access to key bank executives for interviews, also impacted the depth
of qualitative data collection. The researcher overcame this by employing a mixed-methods approach,
combining quantitative financial analysis with available qualitative data from secondary sources, including
industry reports and expert opinions, to provide a comprehensive understanding of the research questions.

Lastly, resource limitations, including time and funding constraints, restricted the study's scope. The
researcher addressed this by narrowing the focus to critical aspects of FinTech investments and their impact
on financial performance, ensuring the study remained manageable while still offering valuable insights.

1.7 Delimitations of the study

The delimitations of this study set clear boundaries to ensure a focused and manageable research scope.
The study specifically examines the impact of FinTech investments on the financial performance of
Namibia's top four commercial banks: FNB Namibia, Nedbank Namibia, Standard Bank Namibia, and
Bank Windhoek. These banks were chosen due to their significant market presence and substantial
investments in FinTech solutions.

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Geographically, the study is confined to Namibia, providing insights relevant to the Namibian banking
sector. The temporal scope of the study covers financial data from the past five years (2018-2023) to ensure
the findings reflect recent trends and developments in FinTech adoption.

The study focuses on specific types of FinTech investments, such as digital banking platforms, mobile
banking applications, and online customer service solutions. This selection is based on their relevance and
prevalence within the chosen banks. By concentrating on these aspects, the study aims to provide detailed
and actionable insights into how these particular investments influence financial performance.

The research employs a mixed-methods approach, combining quantitative financial analysis and qualitative
data from available secondary sources. This approach was chosen to balance depth and breadth, ensuring a
comprehensive understanding of the research questions while remaining within resource and time
constraints. The study does not extend to smaller banks, microfinance institutions, or other financial entities
within Namibia, nor does it explore other forms of technology investments outside the selected FinTech
categories.

2. LITERATURE REVIEW/THEORETICAL FRAMEWORK

The integration of financial technology (FinTech) into banking operations represents a significant shift in the
financial services industry. This transformation is driven by the need to enhance operational efficiency,
improve customer experiences, and boost overall financial performance (Chen, You, & Chang, 2021).
FinTech encompasses a wide range of innovations, including digital banking platforms, mobile banking
applications, online customer service solutions, blockchain technology, and artificial intelligence (AI)
(Hamukwaya, 2019). These technologies are revolutionizing traditional banking models by providing faster,
more efficient, and more accessible financial services to customers (Mbama & Ezepue, 2018).

Despite the global trend towards FinTech adoption, the specific impacts of these investments on banks in
emerging economies, such as Namibia, remain under-explored. Most of the existing literature focuses on
developed markets, where the infrastructure and regulatory frameworks for FinTech are more advanced
(Hafez et al., 2023). This research aims to fill this gap by examining how FinTech investments affect the
financial performance of Namibia's top four commercial banks: FNB Namibia, Nedbank Namibia, Standard
Bank Namibia, and Bank Windhoek.

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Existing Research on FinTech and Banking Performance
Several studies have explored the relationship between FinTech investments and banking performance. Hafez
et al. (2023) examined the impact of FinTech on banks' financial performance, using data from 2012-2020,
and found a positive correlation between FinTech adoption and improved financial metrics. Their study
highlighted that FinTech innovations, such as mobile banking and digital payment systems, significantly
enhance banks' operational efficiency and profitability.

Kiilu (2018) investigated the effect of FinTech firms on the financial performance of the banking sector in
Kenya. The study utilized secondary data from all licensed commercial banks in Kenya and employed
multiple linear regression analysis. Kiilu's findings indicated that FinTech firms contribute to better financial
performance by reducing transaction costs and increasing customer reach. However, the study also pointed
out the challenges of regulatory compliance and cybersecurity risks associated with FinTech adoption.

Akhisar, Tunay, and Tunay (2015) explored the role of FinTech on banking performance using panel data
from various commercial banks in developed and developing countries. Their research found that while
FinTech investments generally lead to improved financial performance, the extent of the impact varies
significantly between developed and developing markets due to differences in infrastructure, regulatory
frameworks, and market readiness.

Additionally, Mbama and Ezepue (2018) studied the influence of digital banking on customer experience and
financial performance in the UK. Their research revealed that digital banking significantly improves customer
satisfaction, which in turn enhances financial performance. They argued that banks must focus on customer-
centric digital solutions to stay competitive.

In another study, Zhao et al. (2022) investigated the relationship between FinTech innovations, patents, and
bank performance in China. They found that banks with a higher number of FinTech patents tend to perform
better financially, as these patents often translate into more innovative products and services that attract and
retain customers.

Gaps in Knowledge and Unanswered Questions

Despite the growing body of research, significant gaps remain, particularly regarding the specific impact of
FinTech investments on banks in emerging economies like Namibia. Most existing studies focus on developed

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markets, leaving a dearth of empirical evidence on how these technologies affect financial performance in
different economic contexts. There is a critical need to understand which specific types of FinTech
investments are most beneficial for improving the financial performance of banks in emerging markets.
Additionally, how these investments affect different aspects of financial performance, such as profitability,
market share, and operational efficiency, remains under-explored.

Another gap is the lack of comprehensive regulatory frameworks necessary to mitigate the risks associated
with rapid FinTech adoption. Many emerging economies, including Namibia, struggle with inadequate
regulatory structures that can both impede innovation and fail to protect against potential financial instability.
Furthermore, there is limited research on the long-term sustainability of FinTech investments and their impact
on the competitive dynamics within the banking sector.

Moreover, the existing literature often relies on secondary data and lacks longitudinal studies that capture the
long-term impacts of FinTech investments. The dynamic and rapidly evolving nature of FinTech poses
challenges in maintaining the relevance and accuracy of research findings. Technologies and regulatory
landscapes can change quickly, potentially rendering some findings outdated. This necessitates ongoing
research and updates to ensure that conclusions drawn from the data remain valid over time. These gaps
underscore the need for a more comprehensive and context-specific analysis that includes both qualitative
and quantitative methodologies to fully understand the multifaceted impacts of FinTech on banking
performance.

Methodological Shortcomings and Controversies

The literature reveals several methodological shortcomings. Firstly, many studies rely heavily on secondary
data, which may not accurately capture the current state of FinTech adoption or its nuanced impacts on
financial performance. This reliance on historical data can lead to outdated or incomplete conclusions.
Secondly, the lack of longitudinal studies in the existing research limits the understanding of long-term
impacts and sustainability of FinTech investments. Most studies provide a snapshot view rather than tracking
changes over an extended period.

Additionally, there is a significant variation in the methodologies used to measure financial performance.
Some studies focus on profitability metrics such as return on assets (ROA) and return on equity (ROE) (Chen,
You, & Chang, 2021), while others emphasize operational efficiency and customer satisfaction (Mbama &

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Ezepue, 2018). This lack of standardization makes it challenging to compare results across different studies
and draw generalizable conclusions.

Another controversy in the literature is the mixed evidence on the impact of FinTech on financial stability.
While some researchers argue that FinTech enhances risk management and financial inclusion (Zhao et al.,
2022), others highlight potential risks, such as cybersecurity threats and the destabilization of traditional
banking models (Stankevičienė & Kabulova, 2022). These conflicting findings point to the need for a
balanced approach that considers both the benefits and risks of FinTech adoption.

Furthermore, the dynamic and rapidly evolving nature of FinTech poses challenges in maintaining the
relevance and accuracy of research findings. Technologies and regulatory landscapes can change quickly,
potentially rendering some findings outdated. This necessitates ongoing research and updates to ensure that
conclusions drawn from the data remain valid over time.

Theoretical Framework
This study is guided by the Technology-Organization-Environment (TOE) framework, which posits that the
adoption and implementation of technological innovations are influenced by technological, organizational,
and environmental factors (Tornatzky & Fleischer, 1990). In the context of this research, the TOE framework
will help analyze how technological readiness, organizational capabilities, and external pressures drive
FinTech investments and their impact on financial performance.

Technological factors refer to the existing technologies available to an organization and the perceived benefits
of adopting new technologies. For banks, this includes the availability of digital banking platforms,
cybersecurity technologies, and data analytics tools. Organizational factors encompass the internal
capabilities and resources of a bank, such as financial resources, skilled personnel, and organizational culture
that supports innovation. Environmental factors involve external pressures, including regulatory
requirements, market competition, and customer demand for digital services (Tornatzky & Fleischer, 1990).

The TOE framework provides a comprehensive lens to examine the multifaceted drivers and barriers to
FinTech adoption in the banking sector. By applying this framework, the study aims to uncover the interplay
between these factors and how they collectively influence the financial performance of banks in Namibia.

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This approach allows for a holistic understanding of the conditions under which FinTech investments can be
most effective and sustainable.

3. RESEARCH METHODOLOGY

3.1 Research design

The research will adopt a mixed-methods design, integrating both quantitative and qualitative approaches to
comprehensively explore the impact of FinTech investments on the financial performance of Namibia's top
four commercial banks: FNB Namibia, Nedbank Namibia, Standard Bank Namibia, and Bank Windhoek.
This design is appropriate for the study as it allows for a robust analysis of numerical financial data while
also capturing the nuanced insights from bank executives regarding their experiences with FinTech
implementation (Creswell, 2014).

Quantitative Approach
The quantitative component of the study will involve analyzing secondary financial data from the annual
reports and financial statements of the selected banks over the past five years (2018-2023). Key financial
performance indicators such as return on assets (ROA), return on equity (ROE), net profit margin, and cost-
to-income ratio will be examined. The rationale for using this approach is to quantify the relationship between
FinTech investments and financial performance, providing empirical evidence of the impact (Chen, You, &
Chang, 2021; Hafez et al., 2023).

Qualitative Approach
The qualitative component will involve conducting semi-structured interviews with key executives and
managers involved in FinTech strategy and implementation within the banks. The purpose of this approach
is to gain an in-depth understanding of the challenges, benefits, and strategic considerations associated with
FinTech investments. The insights from these interviews will complement the quantitative data, offering a
richer context and identifying factors that may not be captured through financial metrics alone (Mbama &
Ezepue, 2018).

Rationale for Mixed-Methods Design

A mixed-methods design is chosen because it combines the strengths of both quantitative and qualitative
research. While the quantitative approach provides measurable and generalizable data on financial

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performance, the qualitative approach offers detailed insights and contextual understanding that can explain
the underlying reasons behind the numerical trends. This combination is particularly valuable for exploring
complex phenomena like FinTech investments, where both the outcomes and the processes leading to those
outcomes are important (Creswell, 2014; Tashakkori & Teddlie, 2010).

3.2 Population of the study

The population for this study comprises the top four commercial banks in Namibia: FNB Namibia, Nedbank
Namibia, Standard Bank Namibia, and Bank Windhoek. These banks have been selected due to their
significant market presence, extensive customer base, and substantial investments in FinTech solutions. The
study aims to draw a sample from these institutions to investigate the impact of FinTech investments on their
financial performance. These four banks are representative of the larger banking sector in Namibia, and their
performance and strategic decisions significantly influence the overall financial landscape of the country. The
study’s findings will therefore be generalized to the broader population of commercial banks in Namibia,
providing insights into how FinTech investments affect financial performance in this specific economic and
regulatory context.

In addition to the banks themselves, the study will also consider the perspectives of key stakeholders within
these institutions, including executives, managers, and other personnel involved in FinTech strategy and
implementation. This will ensure a comprehensive understanding of the impact of FinTech from both an
organizational and an operational perspective.

3.3 Sampling procedures

The study will employ a purposive sampling method to select participants for both the quantitative and
qualitative components. Purposive sampling, also known as judgmental or selective sampling, involves
selecting units based on specific purposes associated with answering a research study's questions. This
method is particularly suitable for this study as it allows for the deliberate selection of the most informative
cases to achieve a comprehensive understanding of the research problem (Palinkas et al., 2015).

Quantitative Sampling
For the quantitative component, the sample will consist of financial data from the annual reports and financial
statements of the top four commercial banks in Namibia—FNB Namibia, Nedbank Namibia, Standard Bank

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Namibia, and Bank Windhoek—over the past five years (2018-2023). This period is chosen to provide a
robust dataset that captures recent trends and developments in FinTech investments (Chen, You, & Chang,
2021; Hafez et al., 2023).

Qualitative Sampling
For the qualitative component, the study will target key executives and managers within these banks who
are involved in FinTech strategy and implementation. Specifically, the sample will include:
• Chief Technology Officers (CTOs) and/ or Chief Financial Officers (CFOs)
• Heads of IT Departments and/ or Senior Managers responsible for FinTech projects

Sampling Procedures
For the quantitative data, financial reports and statements of the selected banks will be sourced from their
official websites and financial databases (Chen, You, & Chang, 2021; Hafez et al., 2023). Potential interview
participants for the qualitative data will be identified through the banks’ organizational charts and internal
contacts (Mbama & Ezepue, 2018). Quantitative data will be collected comprehensively from all available
annual reports and financial statements within the specified period (2018-2023). Qualitative participants will
be selected based on their roles and responsibilities related to FinTech within the organization, with initial
contact made via email to explain the purpose of the study and request their participation (Palinkas et al.,
2015).

Rationale for Sampling Method

The purposive sampling method is chosen for its effectiveness in capturing rich, relevant, and specific data
from knowledgeable individuals directly involved in FinTech decision-making and implementation. This
approach ensures that the collected data will be highly relevant and informative, providing deep insights into
the impact of FinTech investments on financial performance (Palinkas et al., 2015).

3.4 Research Instruments

The study will employ two primary research instruments to collect data: financial document analysis and
semi-structured interviews. These instruments are chosen for their appropriateness in addressing the
research questions and objectives effectively.
Financial Document Analysis

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Financial document analysis will be utilized to collect quantitative data from the annual reports and financial
statements of the selected banks, over the past five years (2018-2023). Key financial performance indicators
such as return on assets (ROA), return on equity (ROE), net profit margin, and cost-to-income ratio will be
extracted and analyzed. This instrument is appropriate because it provides objective, reliable, and
comprehensive data that reflect the financial health and performance of the banks. Utilizing financial reports
ensures that the data are standardized and comparable across the different banks, allowing for robust statistical
analysis (Chen, You, & Chang, 2021; Hafez et al., 2023).

Semi-Structured Interviews
Semi-structured interviews will be conducted with key executives and managers within these banks who are
involved in FinTech strategy and implementation. This includes Chief Technology Officers (CTOs) and/ or
Chief Financial Officers (CFOs) and Heads of IT Departments, and/ or Senior Managers responsible for
FinTech projects. The semi-structured interview format allows for flexibility in exploring specific themes and
topics related to FinTech investments, while also providing a structured framework to ensure that all relevant
areas are covered. This instrument is suitable because it enables the collection of in-depth insights and detailed
information that may not be evident from financial documents alone. It allows participants to share their
experiences, perspectives, and strategic considerations, thus providing a richer context to complement the
quantitative data (Mbama & Ezepue, 2018; Palinkas et al., 2015).

The combination of financial document analysis and semi-structured interviews is selected to provide a
comprehensive understanding of the impact of FinTech investments on the financial performance of
Namibia's top banks. Financial document analysis offers quantitative evidence of performance changes, while
semi-structured interviews provide qualitative insights into the strategic and operational aspects of FinTech
adoption. This mixed-methods approach ensures that the study can address the research questions and
objectives from multiple angles, providing a more nuanced and complete picture of the phenomena under
investigation.

3.5 Data collection methods/procedures

Quantitative Data Collection
For the quantitative component, data will be collected through financial document analysis. The annual
reports and financial statements of the top four commercial banks in Namibia—FNB Namibia, Nedbank
Namibia, Standard Bank Namibia, and Bank Windhoek—will be sourced from their official websites and
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 financial databases. The key financial performance indicators to be extracted include return on assets (ROA),
return on equity (ROE), net profit margin, and cost-to-income ratio for the years 2018 to 2023. The data
collection procedure will involve the following steps:
• Identification and Access: Identify and access the annual reports and financial statements from the
banks’ official websites and financial databases.
• Extraction: Extract relevant financial data from the reports. This will involve reviewing each report
and systematically recording the necessary financial metrics in a structured format.
• Verification: Cross-verify the extracted data for accuracy and consistency to ensure reliability.
• Compilation: Compile the data into a database for further analysis.

Qualitative Data Collection

For the qualitative component, data will be collected through semi-structured interviews with key executives
and managers involved in FinTech strategy and implementation. This includes CTOs and/ or CFOs, Heads of
IT Departments, and/ or Senior Managers responsible for FinTech projects. The data collection procedure
will involve the following steps:
• Participant Selection: Identify potential participants through organizational charts and internal
contacts within the selected banks (Mbama & Ezepue, 2018).
• Initial Contact: Send initial contact emails to potential participants, explaining the purpose of the
study and requesting their participation (Palinkas et al., 2015).
• Interview Scheduling: Schedule interviews at times convenient for the participants, offering options
for face-to-face or video conferencing.
• Interview Guide Preparation: Develop an interview guide with key questions and themes to ensure
consistency across interviews while allowing flexibility for in-depth exploration of relevant topics.
• Conducting Interviews: Conduct the interviews, ensuring to record and take detailed notes for
accurate data capture.
• Transcription: Transcribe the recorded interviews for thorough analysis.

The collected quantitative and qualitative data will be integrated to provide a comprehensive understanding
of the impact of FinTech investments on financial performance. Quantitative data will be analyzed using
statistical techniques to identify trends and relationships, while qualitative data will be analyzed using
thematic analysis to identify common themes and insights.

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By combining these data collection methods, the study aims to capture both the measurable impacts of
FinTech investments and the nuanced, contextual factors that influence these outcomes.

3.6 Data analysis

Quantitative Data Analysis
The quantitative data, extracted from the annual reports and financial statements of the selected banks, will
be analyzed using various statistical techniques to examine the relationship between FinTech investments and
financial performance indicators such as return on assets (ROA), return on equity (ROE), net profit margin,
and cost-to-income ratio. Descriptive statistics will be employed to summarize the basic features of the
financial data, including the calculation of mean, median, standard deviation, and range, providing an
overview of the banks' financial performance over the study period (2018-2023) (Chen, You, & Chang, 2021).
Following this, correlation analysis using Pearson correlation coefficient will assess the strength and direction
of the relationship between FinTech investments and financial performance indicators, determining the
statistical significance of these relationships (Hafez et al., 2023). Multiple linear regression analysis will then
be conducted to investigate the impact of FinTech investments on financial performance while controlling for
other variables, allowing for a detailed understanding of how FinTech investments contribute to financial
outcomes (Chen, You, & Chang, 2021).

Qualitative Data Analysis

The qualitative data, collected through semi-structured interviews with key executives and managers, will be
analyzed using thematic analysis to identify common themes and insights related to FinTech strategy and
implementation. Thematic analysis will involve coding and categorizing interview transcripts, followed by
the identification of key themes and sub-themes, providing a systematic way to understand participants'
experiences and perspectives (Mbama & Ezepue, 2018). This method is well-suited for qualitative research
as it allows for the exploration of complex issues related to FinTech investments that may not be evident
through quantitative analysis alone. To enhance the credibility and validity of the qualitative findings,
triangulation will be employed by comparing the interview findings with quantitative data and other
secondary sources, cross-verifying information obtained from different sources to ensure a more
comprehensive and accurate understanding of the research problem (Palinkas et al., 2015).

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4 RESEARCH ETHICS
Observing research ethics is crucial to ensuring the integrity and validity of this study. The following ethical

considerations will be strictly adhered to throughout the research process:

Informed Consent

All participants will be fully informed about the purpose, methods, and potential impacts of the research

before participating. Written informed consent will be obtained from all interview participants. The consent

form will outline the study’s objectives, the nature of their participation, and their right to withdraw from the

study at any time without any negative consequences (Grady, 2015).

Confidentiality and Anonymity

To protect the privacy of participants, all data collected will be kept confidential. Identifiable information will

be anonymized in the final research report to ensure that individual participants cannot be traced back to their

responses. Data will be stored securely and only accessible to the research team. Confidentiality agreements

will be signed by all researchers involved in handling the data (Saunders, Kitzinger, & Kitzinger, 2015).

Transparency and Honesty

The research process will be conducted transparently, ensuring that all aspects of the study are openly

communicated to participants and stakeholders. Any conflicts of interest will be disclosed, and the findings

will be reported honestly and without fabrication or misrepresentation (Resnik, 2020).

Responsible Reporting

The findings of the study will be reported responsibly, ensuring accuracy and integrity in the presentation of

data and results. Any limitations or potential biases in the study will be transparently discussed (Harriss,

MacSween, & Atkinson, 2017).

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By adhering to these ethical principles, the study aims to uphold the highest standards of ethical research,

ensuring respect and protection for all participants while maintaining the credibility and reliability of the

research findings.

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2. Baker, H., Kaddumi, T. A., Nassar, M. D., & Muqattash, R. S. (2023). Impact of financial technology
on improvement of banks’ financial performance. Journal of Risk and Financial Management, 16(4),
230. https://doi.org/10.3390/jrfm16040230
3. Bashayreh, A., & Wadi, R. M. A. (2021). The effect of Fintech on banks’ performance: Jordan case.
In The importance of new technologies and entrepreneurship in business development: In the context
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