The Impact of Financial Technology on Customers Decisions in Bank Selection: An Analytical and Applied Study in Private Banks in Karbala Governorate

Abstract

This research investigates the effect of Financial Technology (FinTech) on consumers' choice of banks, focusing on the three key aspects of FinTech: financial innovation, digital transformation, and new banking products and services. The importance of the study lies in the fact that FinTech has become an important enabler for banks to become more competitive, to provide better services to their customers and boost customer confidence, and thus to be a key element in financial inclusion. The study population is the customers of local banks in Karbala Governorate and a random sample of 80 individuals was taken and obtained through a structured questionnaire. The instrument used a 5-point Likert Scale to assess variables. Validity and reliability of the instrument were determined by applying the Cronbach's alpha and appropriate statistical techniques were used to test the research hypotheses, including the mean scores and simple, multiple linear regression. The data collection period of the study was about three months. The findings revealed that the influence of the FinTech dimensions on customers' banking decisions is statistically significant, highlighting that financial innovation, digital transformation and new products play important roles to attract customers and improve their loyalty. The study calls for local banks in Karbala to implement innovative digital strategies, digital financial services, increase bank's transparency and quality, and continuously invest in digital infrastructure and modern financial technologies to meet the rapid changes in banking business environment.

Keywords: Digital Financial Inclusion, Strategic Flexibility, Private Banks, Karbala.