The Effect of Fintech Innovation on the Risk-Taking of Banks listed on the Tehran Stock Exchange

Document Type : Original Article

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The Higher Institute of Banking Education of Iran, Tehran, Iran

Abstract

Nowadays, as global investment in fintech has increased sharply, there are various perspectives regarding the impact of fintech products on reducing banks’ risk-taking behavior through improving their operational efficiency. Since identifying and explaining the channels through which fintech innovation affects different dimensions of banks’ risk can provide an answer to this unexplored aspect of fintech innovation, the following question arises, Therefore, the aim of this study is to investigate the impact of FinTech innovations on the risk-taking and financial stability indicators of banks listed on the Tehran Stock Exchange. Data from 10 banks during 2017-2024 were analyzed using panel data and multivariate linear regression. The results showed that FinTech innovation has a positive and significant impact on the asset-to-capital ratio and Z-Score, in a way that improves the capital structure and increases the distance from the bankruptcy threshold. It also has an inverse and significant impact on the deposit-to-lending ratio, which indicates a decrease in reliance on traditional resources and diversification in banks' financial resources.

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Journal of Economics and Modelling
Volume 16, Issue 3 - Serial Number 63
February 2026
Pages 135-168

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