Impact of Geographic Location on Risks of Fintech as a Representative of Financial Institutions

Yelena Popova (), Olegs Cernisevs and Sergejs Popovs
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Yelena Popova: Transport and Telecommunication Institute, Faculty of Management and Logistics, 1019 Riga, Latvia
Olegs Cernisevs: SIA StarBridge, Research Department, 1050 Riga, Latvia
Sergejs Popovs: Institute of Life Sciences and Technologies, Daugavpils University, 5401 Daugavpils, Latvia

Geographies, 2024, vol. 4, issue 4, 1-16

Abstract: The activities of contemporary financial institutions require significant geographic expansion. Even the increased level of industry digitalisation does not minimise the importance of the physical assets of financial institutions. The environmental factors specific to each geographic region can significantly influence the efficiency of operations of financial institutions. The goal of the article is to determine the impact of the geographic location of physical assets via environmental risks affecting the other risks of fintech as a representative of financial institutions. The impact is determined by the employment of the PLS-SEM model implemented in SmartPLS 4.0 software. The model determines the impact of environmental risks on governance risks, operational risks, human resources and safety risks, ICT risks, compliance risks, and strategic risks. These groups of risks form the latent variables, which comprise the experts’ estimation of threats and vulnerabilities impacts and their likelihoods. After testing five hypotheses, two of them were supported—environmental risks impact human resources safety risks and operational risks.

Keywords: geographic location; risk; financial institutions; fintech; PLS-SEM (search for similar items in EconPapers)
JEL-codes: Q1 Q15 Q5 Q53 Q54 Q56 Q57 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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