Banking in the Age of Blockchain and FinTech: A Hybrid Efficiency Framework for Emerging Economies

Vladimir Ristanović (), Dinko Primorac and Ana Mulović Trgovac
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Vladimir Ristanović: Institute of European Studies, 11 Square Nikola Pašić, 11000 Belgrade, Serbia
Dinko Primorac: Department of Economy, University North, Jurija Križanića 31b, 42000 Varaždin, Croatia
Ana Mulović Trgovac: Department of Economy, University North, Jurija Križanića 31b, 42000 Varaždin, Croatia

JRFM, 2025, vol. 18, issue 8, 1-17

Abstract: In the present era where digitalization, FinTech, and blockchain technologies are reshaping the global financial landscape, traditional measures of bank performance need to evolve. This paper introduces a hybrid approach that combines multi-criteria efficiency assessment and econometric modeling to evaluate bank performance within the context of digital transformation in emerging economies. Focusing on a panel of banks across selected emerging markets, this study first applies a multi-criteria decision-making technique (Data Envelopment Analysis) to assess operational efficiency using both conventional indicators and digitalization-driven metrics, such as mobile banking penetration and blockchain adoption. We then employ a panel econometric model to investigate the factors that shape efficiency outcomes, with special attention to FinTech and blockchain innovations as potential drivers. The results reveal a nuanced picture of how digital technologies can influence bank performance, highlighting both opportunities and constraints for financial institutions in less developed markets. The findings offer actionable insights for bank managers, regulators, and policymakers striving to balance traditional operational priorities with the demands of digital transformation. By linking efficiency measurement with an examination of the digitalization process, this paper provides a timely contribution to the literature on banking and financial innovation, serving as a foundation for future research and strategic decision-making in the FinTech and blockchain era.

Keywords: bank efficiency; FinTech; blockchain adoption; DEA-Malmquist; panel econometrics; emerging economies; digital financial inclusion (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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