A Comprehensive Model for FinTech Development in Iran's Banking System: A Grounded Theory Approach
Keywords:
FinTech, banking, Iran, grounded theory, PLS-SEM, financial innovationAbstract
FinTech has become a central driver of financial innovation, yet evidence on its development in Iran's banking system remains fragmented across regulatory, technological, managerial, and market-oriented studies. This study developed and empirically examined a comprehensive model of FinTech development using a sequential mixed-methods design. In the qualitative phase, 63 published studies were synthesized through a modified grounded-theory approach informed by qualitative meta-synthesis. Open, axial, and selective coding generated a paradigmatic model containing causal conditions, contextual conditions, intervening conditions, strategies and actions, and outcomes around the core phenomenon of FinTech development. In the quantitative phase, the structural relationships among the model components were examined using PLS-SEM with data from 384 banking and academic experts. The results indicate that contextual factors had the strongest direct association with FinTech development, followed by causal and intervening conditions. FinTech development was positively associated with strategies and actions, and strategies and actions showed the strongest association with expected outcomes. The findings provide an exploratory diagnostic framework for policymakers, banks, and FinTech actors seeking to strengthen financial innovation in Iran's banking sector while accounting for macro-institutional constraints.
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