MANAGING CHANGES ON BANK SERVICES AND PERFORMANCE BY ADAPTING FINANCIAL TECHNOLOGY (FINTECH): A CASE OF THE MACEDONIAN BANKING SYSTEM
MANAGING CHANGES ON BANK SERVICES AND PERFORMANCE BY ADAPTING FINANCIAL TECHNOLOGY (FINTECH): A CASE OF THE MACEDONIAN BANKING SYSTEM

Summary/Abstract: The development of financial technology (Fintech) imposes a challenge for traditional financial institutions. Therefore, it is important to analyze how financial technologies can change and affect banks’ performance. The aim and objective of this research are to analyze the possibilities for the development of financial technology, manage and adapt the changes that appear, qualitatively and quantitatively evaluate its impact on the banking sector’s performance in North Macedonia.After the analysis of the academic literature and statistical data, experts’ evaluation method is used to identify the development opportunities of Fintech in North Macedonia and correlation-regression analysis was applied to evaluate the impact of Fintech indicators on the performance of the Macedonian banking sector.According to the results of the experts’ assessment survey, North Macedonia possesses favorable conditions for Fintech enterprises to enter the Macedonian financial market in the next decade. Correlation-regression analysis showed that Fintech indicators influence the banking sector’s performance, but the effect is not very strong.The impact of Fintech in North Macedonia is a new area and so far, very little research. So, the obtained results will expand the scope of the research and would be useful and relevant on (i) how the government sector should manage changes, risks and ensure stability in the financial system; (ii) the way financial institutions can monitor possible developments and risks and manage them; accordingly, and (iii) the banking sector should analyze the impact of technology and Fintech new entities on them and take strategic decisions in this regard.

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