A Systematic Literature Review on the Impact of Fintech Adoption, Digital Transformation, and Bank Stability on Operational Efficiency and Performance in GCC Banks

HRMARS - This systematic literature review examines the impact of fintech adoption, digital transformation, and bank stability on operational efficiency and performance in banks in the Gulf Cooperation Council (GCC) region. Analysing thirty-five peer-reviewed studies, the review highlights that Fintech, and digital technologies significantly enhance operational efficiency, customer service, and financial performance, particularly in conventional and Islamic banks. Key findings reveal positive correlations between technologies like AI, blockchain, and mobile banking and metrics such as return on assets (ROA) and cost reduction. However, bank stability during digital transitions varies by institution size and governance, with larger banks demonstrating greater resilience. Challenges include regulatory fragmentation and Shariah compliance in Islamic finance. The study highlights the importance of harmonised policies, strategic investments, and additional research on the long-term impacts, ESG considerations, and cybersecurity.