The Impact of Fintech on the Stability of Middle Eastern and North African (MENA) Banks

Aisha Mohammad Afzal, Bashar Abu Khalaf (), Maryam Saad Al-Naimi and Enas Samara
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Aisha Mohammad Afzal: Accounting and Finance Department, College of Business, University of Doha for Science and Technology, Doha 24449, Qatar
Bashar Abu Khalaf: Accounting and Finance Department, College of Business, University of Doha for Science and Technology, Doha 24449, Qatar
Maryam Saad Al-Naimi: Accounting and Finance Department, College of Business, University of Doha for Science and Technology, Doha 24449, Qatar
Enas Samara: Finance Department, Graduate School of Business, The National University of Malaysia, Bangi 43600, Malaysia

Risks, 2025, vol. 13, issue 6, 1-22

Abstract: This study investigates the impact of financial technology (Fintech) on bank stability in the Middle East and North Africa (MENA). Utilizing panel data from 94 banks in 10 countries over a 13-year period from 2011 to 2023, this research employs panel GMM regression to examine the relationship between the level of Fintech adoption, as measured by the Fintech index, and a bank’s stability. This paper controls for bank characteristics (efficiency, profitability, size, liquidity risk, and dividend payout ratio) and macroeconomic variables (GDP growth and inflation). The Fintech index is calculated using data text mining from the banks’ annual reports. This research contributes to the existing literature by providing empirical evidence of the positive effects of Fintech adoption in the MENA banking sector. The positive findings underscore the transformative impact of Fintech on banking stability, highlighting the importance of technological integration in MENA’s financial institutions for growth, stability, and effective strategies. The robustness of the results regression confirmed that our findings hold.

Keywords: Fintech; banks’ stability; bank efficiency; profitability; liquidity risk; MENA (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2025
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