Do Big Data Applications and Financial Innovation Lead to Enhanced Banking Performance? Evidence From the United Kingdom

ABSTRACT
Big data and financial innovations are vital to enhancing the performance of banking institutions. However, limited evidence
exists on the effects of big data applications and financial innovation on bank performance. This study addresses this gap by
constructing a theoretical framework linking big data applications and financial innovations to bank performance. The frame
work was empirically tested using questionnaire data from 150 branches of UK banking institutions between January and June
2023. Adopting hierarchical regression modelling, results show that both big data applications and financial innovations posi
tively enhance customer satisfaction as well as financial and market performance within the banking sector. Moreover, big data
applications positively impact financial innovations within banks. The study contributes to a deeper understanding of big data
applications and provides valuable insights for promoting financial innovations within the banking industry