Evaluation of the fintech era on the performance of Moroccan banks: analysis through non-performing loans

Hicham Sadok () and Mohamed El Hadi El Maknouzi

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Abstract: Background This study aims to contribute to a better understanding of the impact of the financial technologies (fintech) era on the performance in the banking sector, measured through non-performing loans (NPL) and their coverage by provisions for NPL. It is a question of knowing whether banking investment in fintech makes it possible to better evaluate the granting of credits, and therefore makes it possible to reduce overdue credits. Methods To this end, the method used consists of using a regression analysis and a Pearson correlation applied to the financial data of Moroccan banks observed during two distinct periods, namely 2007-2014, considered pre-fintech, and the period 2015-2022, considered as the fintech period. Results With the emergence of the fintech era, the Moroccan banking situation improved slightly compared to the pre-fintech period: bad debts did not increase despite the significant increase in net banking income and the size of banking assets during the fintech era. Conclusions The implementation of fintech has improved customer relationship management, credit risk analysis and loan monitoring services, which ultimately reduces non-performing loans and improves the coverage of non-performing loans by provisions. The main implication of the results allows us to deduce that the implementation of fintech makes it possible to have a positive impact on overdue credits, and they are also likely to serve as a lever for the inclusion of those excluded from banking services.

Date: 2024-11-14
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Published in F1000Research, 2024, 13, pp.1365. ⟨10.12688/f1000research.158024.1⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05724334

DOI: 10.12688/f1000research.158024.1

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