The Impact of Financial Technology Adoption on System Performance: A Comprehensive Analysis

Abstract

The focus of the present work is to establish the effects that the implementation of financial technology (fintech) has on system performance and financial management in the various sectors operating in Malaysia with an objective of improving the efficiency of operations alongside the productivity of the organization. The introduction of Fintech services such as e-payments, blockchain and artificial intelligence has helped in revolutionizing the provision of financial services thus enhancing customer satisfaction, ease of operation and assisting in reaching out to the unbanked population. The foregoing analysis indicates that there is no significant untapped positive effect on either financial or non-financial performance from FinTech adoption. However, as noted earlier, there are also rising dangers such as cyber risk, compliance risk, and the risk of lack of infrastructure to support digital markets. Trust, perceived service quality, and digital financial literacy are some of the factors that affect the adoption and use of FinTech solutions. The paper argues the need for improving the level of digital literacy, the existing regulatory landscape, and the relationship between the government and the FinTech companies so that the resulting risks are controllable. Implementation of such measures will ensure that the merits of In carrying out such steps, maximum impact can be derived from the adoption of FinTech in most areas with the aim of encouraging development as well as making financial systems accessible to all. These results highlight the importance of a well-thought-out strategy towards utilizing the various innovations brought about by FinTech without exposing the economy to dangers that would compromise the performance of the existing systems and financial management systems in the country