International Journal of Innovation Science· 2026Q1· Review
Not a silver bullet: a systematic review of Fintech’s role in bank liquidity creation
- 0citations
- Q1SCImago
- 2026year
Short summary
Fintech's impact on bank liquidity creation is not uniform, varying by mechanism, institution, and market conditions, according to a systematic review of 22 empirical studies.
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Key points
- Fintech impacts bank liquidity creation via information enhancement, process efficiency, risk moderation, and market restructuring.
- Fintech's effect on liquidity creation is contingent, mechanism-dependent, and institutionally mediated.
- The literature on Fintech and bank liquidity is geographically concentrated and uses heterogeneous Fintech measures.
- Future research needs theories that view Fintech as a strategic capability and consider institutional conditions.
AI-generated from the title and abstract; the full text is not read.
Abstract
Purpose This study aims to examine how FinTech adoption reshapes bank liquidity creation under digital financial transformation. It identifies the mechanisms linking FinTech to liquidity outcomes and the key limitations that keep the FinTech–liquidity literature fragmented. Design/methodology/approach A systematic literature review was conducted using the PRISMA framework and Scopus database up to 2025. From 5,313 initial records, 22 empirical articles were retained after screening and eligibility assessment and analyzed through structured coding and descriptive bibliographic mapping using VOSviewer and Biblioshiny. Findings The review identifies four mechanisms linking FinTech to bank liquidity creation: information enhancement, process efficiency and funding reconfiguration, risk moderation and liquidity hoarding, and competition-driven market restructuring. FinTech does not exert a uniform effect on liquidity creation; its effects are contingent, mechanism-dependent, and institutionally mediated. It may increase, reduce, or redistribute liquidity creation across different market and regulatory conditions. The literature remains geographically concentrated, relies on heterogeneous proxy-based FinTech measures, and shows uneven causal identification. Research limitations/implications The study calls for theories that conceptualize FinTech as a strategic capability and better account for institutional conditions, competition, regulation, and bank-level capabilities. Practical implications The findings help banks align digital strategies with liquidity management and risk governance, while guiding regulators to balance digital financial innovation with financial stability. Originality/value This review offers an article-level mechanism synthesis that explains why FinTech may increase, reduce or redistribute bank liquidity creation. It also positions FinTech-enabled liquidity creation within innovation-science debates and develops a focused agenda for future research.
The authors' abstract, as published at the source. International Journal of Innovation Science, 2026 · DOI ↗
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