Strategic Adaptation of Traditional Banks to FinTech Disruption in the Egyptian Digital Economy: A Structural Equation Modelling Approach | ||
| مجلة العلوم التجارية والبيئية | ||
| Volume 4, Issue 4, October 2025, Pages 23-50 PDF (703.05 K) | ||
| Document Type: المقالات الأصلية | ||
| DOI: 10.21608/jcese.2025.395455.1119 | ||
| Author | ||
| Walaa Magdy Rezk* | ||
| Assistant Professor, Obour Higher Institute for Management, Computers, and Information Systems, Egypt | ||
| Abstract | ||
| This study explores how traditional banks in Egypt are adapting to the disruptive impact of financial technology (FinTech) within the context of Egypt’s digital transformation goals under Vision 2030 and the Financial Inclusion Strategy (2020–2025). A conceptual model was developed that integrates technological adoption, customer satisfaction, digital readiness, regulatory support, innovation capacity, and cybersecurity infrastructure as key drivers influencing bank performance. The research utilized secondary data collected from publicly available sources including annual reports of major Egyptian banks, Central Bank of Egypt publications, and international databases such as those of the World Bank and IMF. Structural Equation Modeling (SEM) was employed to test the relationships between variables. Results indicate significant positive relationships between technological adoption and bank performance, with digital readiness and leadership acting as moderating factors. Banks that have invested in digital infrastructure and formed strategic partnerships with FinTech firms demonstrated improved performance metrics such as Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). Cybersecurity infrastructure also emerged as a critical factor influencing customer trust and operational stability, especially in light of increasing cyber threats associated with digital banking. The findings highlight the importance of innovation capacity and digital culture in transforming technological investments into competitive advantages. Strategic recommendations were provided for banks to enhance digital capabilities, improve customer experience, and strengthen cybersecurity measures. For regulators, the study suggests updating legal frameworks, establishing regulatory sandboxes, and promoting financial literacy to support the sustainable development of the digital banking ecosystem in Egypt. | ||
| Keywords | ||
| FinTech; Digital Transformation; Banking Innovation; Technological Adoption; Bank Performance; Egypt | ||
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