Efficiency measurement of fintech companies: a two-stage DEA approach


ÇAĞLAR M., NİŞEL S.

Electronic Commerce Research, 2024 (SSCI) identifier

  • Publication Type: Article / Article
  • Publication Date: 2024
  • Doi Number: 10.1007/s10660-023-09804-3
  • Journal Name: Electronic Commerce Research
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, ABI/INFORM, Business Source Elite, Business Source Premier, Compendex, INSPEC, zbMATH
  • Keywords: Data envelopment analysis (DEA), Efficiency, Efficiency measurement, FinTech, Two-stage DEA
  • Yıldız Technical University Affiliated: Yes

Abstract

FinTechs have gained an important place in the financial sector with their dynamic and customer-oriented structures and innovative approaches and business models. In recent years, the competition between actors in the financial sector has intensified. In a rapidly developing sector, where competition is intense and challenging, efficiency is a very important performance indicator for fintechs. This study aims to measure and examine the efficiency performance of FinTech companies. Data Envelopment Analysis was used for efficiency measurement. By establishing a two-stage data envelopment analysis model, "profitability", "marketability" and "overall process" efficiencies of fintechs were measured and analyzed. Efficiency of FinTechs operating in eight different sub-sectors was measured for the period of 2010–2019. The results show that, fintechs’ profitability efficiency performances are higher than their marketability efficiency performances. Besides, efficiency performance of the fintech companies differs on the basis of sub-sectors. This paper is a pioneer study in efficiency measurement of FinTechs.