Around 2000 BC, under the Roman Empire, banks first appeared in recorded history.

When coins were

first used as a medium of commerce, aristocrats desired a secure place to keep them. The safest location
was determined to be Roman temples, which served as financial middlemen by lending those coins to
debtors. Thanks to the famous economist Adam Smith's 1776 invisible hand hypothesis, banks
continued to expand until the 18th century, when they were well-established throughout the British
Empire. The idea gave rise to a self-policing financial environment that moved banking from the public
to the private sector and created a global competitive financial market, particularly in the soon-to-be
developed USA.

(International Journal of Membrane Science and Technology)

Globally, the financial technology (FinTech) revolution is raging. Although technology has been a part of
the financial services sector since the 1850s, the term "fintech" has only become widely used in the last
20 years to refer to technological advancements that have the potential to revolutionize the way
financial services are provided, inspire the development of cutting-edge business models, applications,
procedures, and products, and benefit consumers. In the same time frame, the banking industry has
experienced significant technological and regulatory transformations brought about, among other
things, by digitization, cybersecurity adjustments, deregulation and liberalization, and breakthroughs in
ICTs.
(ELSEVEIRJournal.com)

Since banking was mostly a labor-intensive industry up to the industrial revolution in the early 20th
century, technology did not play a major role. Electronic computing technology has significantly
impacted the banking industry. Abraham Bettinger, vice president of Bank Manufacturers Hanover Trust,
developed a model for resolving common banking issues, coining the term "FinTech" in 1972. He went
on to define "FinTech" at that point as an acronym for financial technology, which uses computers to
combine management science and banking experience. Subsequently, the phrase reappeared in the
early 1990s in relation to a Citigroup initiative designed to promote technology collaboration in the
banking industry. FinTech continued to grow, and in 2021 there were over 10,000 registered startups in
the US and over 26,000 worldwide.

(International Journal of Membrane Science and Technology)

The word "fintech," which stands for financial technology, describes the fusion of technology and
money. The Financial Services Technology Consortium, founded by Citigroup in the early 1990s, served
as its model. This novel idea involves a brand-new financial model in which technology acts as a carrier
to deliver a range of financial services, such as online platforms, mobile payments, cloud computing, and
other cutting-edge technical tools, for settlement, financial management, and financing. Computerized
networks have supplanted face-to-face communication between financial service providers and their
clients as a result of the digital revolution, particularly during the COVID-19 epidemic. The use of FinTech
services, such as mobile payments and online banking, has increased dramatically as a result of this
change. If people begin to handle their accounts differently, traditional banking is exposed to significant
danger.
(Journal of Risk and Financial Management)

Standard & Poor's experts believe that FinTech will have a significant impact on the global financial
sector and that traditional financial services and products will undergo a significant transition as a result.
The 2019 KPMG report stated that global FinTech investment hit USD 111.8 billion in 2018, indicating a
120% increase from the year before.Currently, there are more than 310 FinTech companies in the
Middle East and North Africa (MENA) area, with 50% of them situated in the United Arab Emirates (UAE)
and about 7% in Jordan. Since FinTech is regarded as the wave of the future for the financial industry,
the Central Bank of Jordan has been a major player in its development, realizing the importance of
banks in its advancement.

In Jordan, the proportion of bank customers is less than 35%, although the use of mobile phones has
topped 100%. Through the introduction of retail payment systems, electronic payments like cash
transfers and billing, and creative identity solutions that address the needs of vulnerable groups in
society, such as women and rural dwellers, the Central Bank of Jordan has played a significant role in
advancing financial inclusion. In order to bolster electronic transactions even further, the Central Bank
intends to create legislative frameworks. As a result, the banking industry is in a good position to take
advantage of cutting-edge FinTech solutions to improve financial inclusion, attract deposits, expand
flexibility, and reduce costs.

The report in the United Arab Emirates emphasizes the benefit of the sophisticated FinTech framework,
which allowed banks and other financial institutions to offer services at comparatively low costs during
the COVID-19 pandemic. The Central Bank of the United Arab Emirates (CB UAE) reported in a recent
study that banks and other financial institutions had responded to the pandemic with flexibility,
reaching a larger audience and fostering financial inclusion through digital banking and efforts meant to
boost e-commerce, transfers, and payments.

There is one question that made us begin this paper or made us dig more through our title which is the
impact of fintech of bank’s performance and the question is:

Does the adoption of FinTech impact the financial performance of banks?

While financial ratios such as ROA and ROE are important for analyzing the financial efficiency of banks,
measuring financial performance using total deposit and net profits is also crucial for several reasons:
Total deposit is an indicator of a bank’s ability to attract deposits from customers. Higher total deposit
can indicate a larger customer base and increased trust in the bank’s ability to manage funds, which can
attract more customers and increase profits. Moreover, net profits provide a measure of a bank’s
profitability.They take into account all expenses, including operating expenses and loan losses, and show
how much money the bank has left over after expenses are paid. Higher net profits indicate that the
bank is generating more revenue than it is spending, which is a positive sign for investors. Finally, total
deposit and net profits are easily understandable by both investors and the general public, which makes
them useful indicators for measuring a bank’s financial performance. They can be used to make quick
comparisons between different banks, or to evaluate a bank’s performance over time.

(Journal of Risk and Financial Management)

The structure of the paper will follow a logical sequence of sections. The next section will be the
theoretical framework, where the relevant literature and theories related to the research topic will be
presented and discussed. This section will provide a conceptual framework for understanding the
research problem and the research questions. Following the theoretical framework, the research
methodology section will be presented. This section will describe the research design, data collection
methods, and analysis techniques that were used in the study. It will explain how the data was collected,
how it was analyzed, and how the results were interpreted. After the research methodology section, the
results and hypothesis testing will be explained. This section will present the findings of the study and
describe how the hypotheses were tested. It will provide an objective analysis of the data and discuss
the statistical significance of the results. Finally, the findings discussion and recommendations section
will be presented. This section will summarize the main findings of the study and discuss their
implications. It will also provide recommendations for future research and suggest ways in which the
results of the study can be applied in practice.