Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Does Fintech-Driven Competition Reduce Bank Risk-Taking? Evidence from Emerging Markets
Nguyen Thi Minh Trang
23 October 2026 · Vol. 2, Issue 10, pp. 705-712
DOI: 10.65150/EP-jefrr/V2E10/2026-03
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What is this article about?
This paper examines the relationship between bank fintech competition and bank risk-taking using data from 18 emerging-market countries from 2014 to 2023. Previous studies have looked at fintech adoption and bank competition, or at bank competitiveness and performance, but few have examined how bank fintech competition affects banks’ risk-taking, especially in emerging countries, even though fintech matters a great deal to banking in these markets.
Article at a glance
- Published
- 23 October 2026
- Volume / issue / pages
- Vol. 2, Issue 10, pp. 705-712
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
This paper examines the relationship between bank fintech competition and bank risk-taking using data from 18 emerging-market countries from 2014 to 2023. Previous studies have looked at fintech adoption and bank competition, or at bank competitiveness and performance, but few have examined how bank fintech competition affects banks’ risk-taking, especially in emerging countries, even though fintech matters a great deal to banking in these markets. The study applies a two-stage empirical model to panel data and build a fintech index, with financial inclusion as the proxy, using principal component analysis. The results show that fintech adoption, measured by financial inclusion, increases competition among banks, and that this competition is associated with less risk-taking. These findings are consistent with the competition-stability theory and point to a stabilizing role for fintech in banking, particularly in emerging markets where access to financial services is still limited. The study adds to the literature by identifying common trends, disparities, and factors that may influence banks’ risk-taking under bank fintech competition.
Keywords: Competition-stability hypothesis, Financial inclusion, Fintech adoption, Principal component analysis, Z-score
Cite this article
Nguyen Thi Minh Trang (2026). Does Fintech-Driven Competition Reduce Bank Risk-Taking? Evidence from Emerging Markets. Journal of Economic, Finance Research and Review, 2(10), 705-712. https://doi.org/10.65150/EP-jefrr/V2E10/2026-03
@article{Nguyen2026,
title = {Does Fintech-Driven Competition Reduce Bank Risk-Taking? Evidence from Emerging Markets},
author = {Nguyen Thi Minh Trang},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {10},
pages = {705-712},
doi = {10.65150/EP-jefrr/V2E10/2026-03},
url = {https://doi.org/10.65150/EP-jefrr/V2E10/2026-03}
}Questions about this article
Who wrote this article?
Nguyen Thi Minh Trang.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 10, pages 705-712, published by EP Journals Group on 23 October 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E10/2026-03 (https://doi.org/10.65150/EP-jefrr/V2E10/2026-03).
How do I cite this article?
APA: Nguyen Thi Minh Trang (2026). Does Fintech-Driven Competition Reduce Bank Risk-Taking? Evidence from Emerging Markets. Journal of Economic, Finance Research and Review, 2(10), 705-712. https://doi.org/10.65150/EP-jefrr/V2E10/2026-03
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