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A Study on Impact of Fintech Adoption on Banking Sector Performance in Indian Stock Market
Subject area: Management and Commerce · Area of research: FinTech and Banking Performance
DOI: https://doi.org/10.64388/IREV10I2-1720273
Abstract
Does the market actually react when an Indian bank rolls out a new FinTech product? That is the question this paper tries to answer. Using event-study methodology, nine FinTech-related launches are examined — three each from State Bank of India (SBI), ICICI Bank, and Kotak Mahindra Bank — spanning the financial years 2015–16 through 2024–25. For each launch, daily abnormal returns and cumulative abnormal returns (CAR) were worked out against the BSE BANKEX index using the standard market model, then checked for statistical significance with t-tests over (-2, +2) and (-5, +5) windows around the event date. Not one of the nine events produced a reaction large enough to be statistically significant. Put simply, the market does not seem to treat these announcements as news — FinTech rollouts appear to be priced in well before launch day, or investors simply see them as routine steps rather than turning points. That said, this does not mean FinTech is unimportant: banks that adopt it consistently report gains in efficiency, service quality, and customer retention over the longer run. The paper closes with what this pattern might mean for bank managers, investors, and regulators trying to make sense of how digital innovation gets priced in a market like India's.
Keywords
FinTech; Event Study; Abnormal Returns; Cumulative Abnormal Returns; Indian Banking Sector; BSE BANKEX
How to cite this paper
@article{1720273,
author = {Sai Keerthi A, Prof. Maruthi V},
title = {A Study on Impact of Fintech Adoption on Banking Sector Performance in Indian Stock Market},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {2},
pages = {327-331},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1720273.pdf},
abstract = {Does the market actually react when an Indian bank rolls out a new FinTech product? That is the question this paper tries to answer. Using event-study methodology, nine FinTech-related launches are examined — three each from State Bank of India (SBI), ICICI Bank, and Kotak Mahindra Bank — spanning the financial years 2015–16 through 2024–25. For each launch, daily abnormal returns and cumulative abnormal returns (CAR) were worked out against the BSE BANKEX index using the standard market model, then checked for statistical significance with t-tests over (-2, +2) and (-5, +5) windows around the event date. Not one of the nine events produced a reaction large enough to be statistically significant. Put simply, the market does not seem to treat these announcements as news — FinTech rollouts appear to be priced in well before launch day, or investors simply see them as routine steps rather than turning points. That said, this does not mean FinTech is unimportant: banks that adopt it consistently report gains in efficiency, service quality, and customer retention over the longer run. The paper closes with what this pattern might mean for bank managers, investors, and regulators trying to make sense of how digital innovation gets priced in a market like India's.},
keywords = {FinTech; Event Study; Abnormal Returns; Cumulative Abnormal Returns; Indian Banking Sector; BSE BANKEX},
month = {August},
doi = {https://doi.org/10.64388/IREV10I2-1720273}
}