The Impact of Financial Technology Expenditures on Attracting Deposits and Investing Funds: An Applied Study on Jordanian Islamic Banks

Abstract

Purpose: The study aims to demonstrate the impact of financial technology expenses on attracting deposits and utilizing funds within Jordanian Islamic banks.   Method/design/approach: To achieve this, the researchers used a descriptive-analytical approach to describe the phenomenon of financial technology expenses from 2016 to 2022, and to analyze its effect on deposit attraction and fund utilization in the relevant banks.   Results and conclusion: The study's results indicated a tangible and positive impact of financial technology expenses on deposit attraction in Jordanian Islamic banks during the studied period. Additionally, the results also demonstrate a positive effect of financial technology expenses on the volume of funding and investment in Jordanian Islamic banks during the studied period. Statistical analysis revealed that these results have statistical significance, suggesting that financial technology expenses have a strong and tangible impact on deposit attraction and fund utilization in Jordanian Islamic banks.   Research implications: The study results suggest that upcoming research could delve into the policy implications, for bodies to back fin.tech integration in Jordan's banking industry. Subsequent inquiries could examine customer behavior risk management approaches and the lasting viability of fin.tech investments. Moreover conducting studies across regions and pinpointing future research avenues are essential to enhance comprehension of how fin.tech influences deposit attraction and fund utilization, in Islamic banks.   Originality/value: The Significance of this research lie, in its investigation of the effects of fintech spending on banks in Jordan shedding light on the merging realms of Islamic finance and contemporary technology. The results offer advice for decision makers, banking leaders and scholars striving to boost the efficiency and competitiveness of banking, in Jordan and other regions.