Abstract

The research aims to study the impact of the use of financial technology on the performance of institutions and companies and to analyze the extent of its contribution to reduce operational risks. The research included 10 financial institutions.

To achieve the research objective, electronic services, represented by the number of ATMs relative to the number of branches, points of sale, online banking services, and mobile banking services, were used as indicators of financial technology, while the return on assets and return on equity were used as indicators of financial performance. The ratio of operating expenses to total operating income was used as an indicator of operational risk. The panel data method was used, and multiple linear regression was conducted using the general least squares methodology.