FinTech Adoption and Financial-Sector Outcomes: A Systematic Literature Review Firm-Performance, Stock Price Volatility, Operational Efficiency and Financial Stability

Authors

  • Muhammad Mohsin Bhatti PhD Scholar Institute of Business Management & Administrative Sciences, The Islamia University of Bahawalpur
  • Hassan Mujtaba Nawaz Saleem Associate Professor Institute of Business Management & Administrative Sciences, The Islamia University of Bahawalpur
  • Muhammad Farooq Assistant Professor Institute of Business Management & Administrative Sciences, The Islamia University of Bahawalpur

Abstract

Purpose: This study explores the existing literature on the impact of Financial Technology (FinTech) on Financial Firm Performance with mediating roles of operational efficiency (OE) and financial stability (FS). The existing literature is mostly on banking sector, FinTech startups, digital finance, financial inclusion and FinTech Models. This systematic literature review (SLR) synthesis the evidence on the impact of FinTech on financial-sector outcomes with specifically focuses on four domains: firm performance, stock price volatility, operational efficiency and financial stability.

Methodology: By following PRISMA 2020 principles, the review protocol, database coverage, search concepts, eligibility criteria, coding domains and a narrative synthesis.

Findings: the evidence indicates a positive association between FinTech and firm performance but it also dependent on other factors such as measurement tools, technology type, firm dynamics and country conditions. Evidence on financial stability is mixed: FinTech can enhance risk management, resource allocation but new array of vulnerabilities arises such as market competition, cyber exposure and liquidity mismatch. Evidence on stock price volatility is clear that fintech adoption improve the asymmetric information for all stakeholders. Operational efficiency and financial stability play central role in mechanism of FinTech adoption and firm performance, but cost of implantation and organizational capability can produce non-linearity in short run.

Practical Implications: The qualified results are helpful for researchers to understand the extent of literature to find out direction of further research.

Originality: This is a unique work done on the FinTech adoption and firm performance/ stock price volatility. This type of SLR is never conducted early. So, it is unique work done.

Keywords: FinTech adoption; digital finance; firm performance; Tobin’s Q; stock-price volatility; operational efficiency; financial stability; systematic literature review; emerging markets; Pakistan

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Published

2026-03-31

Issue

Vol. 5 No. 01 (2026): Journal of Religion and Society

Section

Articles