A Review of Studies Regarding the Impact of Financial Technology (Fintech) and Financial Stability: The Mediating Role of Corporate Social Responsibility

Abstract

The determination of this review is to evaluate the existing studies on the link between fintech and the financial stability of the banking sector, as well as the mediating effects of corporate social responsibility. This study mainly analyses the most relevant contents of fifty existing studies that are retrieved from the Google Scholar database. The specific period is taken into account for the study (2015–2023). The PRISMA method was applied for this literature review. There are some limitations of this study; first, it is solely uses Google Scholar for articles. Second, only general articles are evaluated, not book chapters, review papers, working papers, reports, editorials, conference papers, graduate theses, or preprints. Thirdly, this review covers 2015–2023. Fourth, evaluate only one financial sector, which may be unsatisfactory. The results are in a mixed pattern because many studies reveal that the financial technology and financial stability of the banking sector have positive and significant results because the contribution of financial technology boosts their operation in many ways, like lending and borrowing, wealth management, asset management, insurance, and many other activities that a commercial bank performs. On the other hand, various studies have found a negative and insignificant relationship between Fintech and financial stability. Because of that, there are some factors like risk and government laws and regulations that do not have enough management. Fintech and corporate social responsibility also have a positive impact on the financial stability of the banking sector. Because of the new potential and risks for the monetary segment, the present article contributes to our knowledge of how the expansion of fintech businesses affects the banking industry. The article also offers recommendations for future studies on the effects of fintech activities on economic and social prosperity.