## The Nexus of FinTech Adoption, Human Resource Competency, Service Innovation, and Firm Growth in the Banking Sector: An Investigation Using Entropy and TOPSIS### AbstractThe integration of financial technology (FinTech) and human resource (HR) proficiency has a significant impact on the banking sector's growth, innovation, and efficiency. However, assessing these factors effectively remains a challenge. This study proposes a hybrid multi-criteria decision-making (MCDM) model that combines Entropy-Weighted Method (EWM) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) to address this challenge. The EWM determines criterion weights, while TOPSIS ranks potential alternatives. This model was applied to eleven multidimensional criteria and eight alternative scenarios, revealing the significance of the proposed MCDM approaches in evaluating FinTech adoption, HR competency, service innovation, and firm growth. The findings underscore the utility of entropy-based TOPSIS approaches in providing a structured analysis for smarter, evidence-based decision-making, ultimately identifying the optimal alternative from the evaluated options.### IntroductionTechnological advancements permeate various industries, including banking. By adopting modern technologies (e-banking) and service innovation (e-branch shops), banks introduce alternative service channels while lowering operating costs due to reduced branch office and personnel requirements. Technological advancements have noticeably influenced humanity's reliance on and expectations of the banking sector. As shareholders and corporate officers anticipate that the banking market will leverage innovation to overcome post-crisis challenges and disrupt conventional wisdom, this transformative experience will undoubtedly impact the banking industry. "Finance technology" or more commonly "FinTech" is the umbrella term used to describe this category of innovation. FinTech advancements and HR competency potential have gained importance in the banking industry because they provide cutting-edge techniques to connect with consumers and gather tangible data to aid in lending choices [1] and to resolve customer-related issues efficiently.The banking sector's ongoing digitalization creates an environment rich with tech-savvy consumers, enabling institutions to participate in a data economy. Traditional and cutting-edge technologies and innovations facilitate the shift from "business as usual" philosophy by enhancing banking services. Technologies and innovations support the adoption of FinTech and service innovation in the banking sector [2]. This encompasses topics like fraud, anti-money laundering, cyberattacks, performance outcomes, advertising tactics, and personalization. The industry is also attempting to cut operating costs, manage speed and adaptability, and embrace new ideas including FinTech, HR competencies, and service enhancements. The conventional banking model is being phased out in favor of a technologically enhanced one, necessitating upgrades in database administration and intelligent wealth creation. Researchers face challenges in evaluating FinTech adoption, HR competency potential, and service innovation's impact on the banking sector. To solve these issues, this research introduces a well-known hybrid MCDM model for efficiently evaluating these innovations and their adoption in the banking sector. This hybrid model combines EWM and TOPSIS to solve the multi-criteria problem and systematically arrange the alternatives for effective decision-making in the banking industry. The EWM technique is applied for the measurement of criterion importance while the TOPSIS system is applied for the ranking of chosen choices (alternatives). The best alternative is then identified and optimal decision is reached.[3] investigated the impact of some of the most powerful scientific tools used by banks on their marketing strategy, with a focus on the advancement of human capital and the traditional profit ratio in the field. Previous research highlights how financial institutions are moving away from a more wealth-oriented business model and centuries-old corporate practices. It also demonstrates how a surge in the skill level and quantity of highly capable human capital constitutes the latest paradigm. The research [4] delivers a succinct summary of the evolving business and FinTech attitudes that banks have developed in response to competition from the fintech industry. It emphasizes the fundamental tenet of considering the relationships between FinTech and restructurings with organizational values in order to correctly comprehend the FinTech breakthrough trend. To date, academics have shown relatively little interest in business structure and internal architecture for banks against the backdrop of FinTech innovation. However, by establishing a structure through which these linkages may be understood, the proposed study demonstrates their value and importance.Academics, corporations, and financiers are increasingly interested in the "FinTech" paradigm, which combines the banking industry with digital technologies. FinTech is commonly covered in the media, shaping public opinion and raising knowledge, but this awareness must be supported by solid evidence. The proposed study could investigate the existence of FinTech advancements by examining five FinTech firms in Switzerland within the theoretical framework of existing FinTech knowledge and its qualities. The analysis expands understanding of fintech and creates a conducive environment for further research as a result. The principal objective of the proposed research [5] is to determine whether FinTech will revolutionize the monetary system in a way that enhances the health and viability of the banking sector. The research recommended concentrating on the European financial sector in order to gain insights into the forces driving fintech and its future effects. The analysis provides practitioners and European financial institutions with valuable recommendations for boosting their presence in contemporary finance and keeping abreast of potential challenges. The digitization of the banking sector has long transformed the paradigm of customer service. Experts in computer management and banking are investigating the implications of technological progress on fintech businesses. Concerning these cutting-edge and distinctive corporate activities, [6] have produced extensive research on the latest trends in digital banking analysis. The Financial Technology Cube offers a framework for examining this area and comprises the main components of fintech and financial innovation, such as the participating entities, the technology and technical theories employed, and the pertinent business processes. This method enables the systematic organization of scientific research, encourages the identification of potential research topics, and guides academics working in financial development.The existing literature focuses on the incorporation of financial technologies in traditional banking systems; however, it fails to provide a thorough assessment framework that incorporates cutting-edge technologies like blockchain and artificial intelligence with traditional growth factors like customer service, regulatory compliance, and environmental sustainability. Furthermore, limited research uses MCDM techniques to investigate mechanisms for dynamic criteria weighting in conjunction with sustainable practices. This study aims to propose an adaptive MCDM framework for evaluating alternative options by considering multifaceted criteria, assessing how FinTech adoption in the banking industry interrelates with service innovation, HR competence enhancement, and organizational growth. The following are the key objectives of this research article:1. To examine the adoption of FinTech, service innovation, HR competency potential, and firm growth in the banking sector.2. To propose an effective multifaceted approach for selecting better alternatives that influence the banking sector's performance and development.3. To rank various alternatives operating within the banking sector by evaluating and selecting the most effective characteristics derived from the analysis.4. To utilize a hybrid Multi-Criteria Decision-Making (MCDM) system to systematically assess and rank different alternatives, employing the Entropy-Weighted Method (EWM) for criterion weight determination and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) for alternative ranking.5. Finally, to identify the most effective alternative that significantly contributes to enhancing the environmental efficiency and overall growth of the banking sector.### Literature ReviewThe rapid advancement of computer technology has accelerated innovation in the banking sector, attracting academic interest and fostering the formation of numerous commencement businesses due to the use of advanced innovation and flexible entrepreneurial processes. These businesses are swiftly being recognized as competitors for existing organizations, particularly banks. The work [7] reveals the analysis of Indonesia's growing Fintech financing industry as a subset of business model innovation. Millennials, smart people who are known as competitive and quick executives rule the Fintech loan sector. Digitalized innovations, which are constantly developed to satisfy the evolving needs of consumers, help to enhance their strategic benefits. Digital lending's explosive development necessitates the evaluation of FinTech lending's future implications besides the increasing needs it confronts. [8] investigates the relationship between HRM practices and intention to remain in an organization, as well as the mediating effects of two variables: goal similarity and a cognitive approach to HRM. Applying a sequential framework to a sample of 265 certified auditors working for CPA firms, we reveal expertise and organizational commitment serve to moderate the effect of mobility and recognition. Furthermore, the relationship between information-sharing, fair compensation, and decision to remain is mediated by organizational commitment. Training significantly impacts stay desire. These outcomes lay the groundwork for developing an HR management paradigm that links an expert staff's organizational and expert devotion, as well as the prospect of a compromise between traditional ethical behavior and organizational success.All nations, like India, that wish to experience wealth creation must pay particular attention to their banking industries. In order to secure India's long-term prosperity [9], have aimed to ascertain the present achievement criteria for bankers and argue that regulators must raise their satisfaction ratings. The SPSS tool evaluated demographic data. Additional multivariate techniques identified characteristics required by bankers employing the SmartPLS software to remain satisfied with their employment. The results of research [9] reveal that elements like pay, rewards, and performance reviews have a big impact on the work satisfaction of Bangladeshi bank employees. The premise of the suggested work is that corporate and covered entities ought to ensure that assessments are conducted, and individuals conducting the assessments should receive adequate compensation for their work. It probed how knowledge proactiveness desire, a creative, unique, and finite resource, influences the functional performance of the business using the Resource-Based Theory framework. Based on the framework of innovation performance, innovative market strategies, as well as an individual's demand for knowledge responsiveness and inventive thinking styles, [10] paper posits that the environment for creativity has an impact on innovativeness. Three time periods were used to gather a statistically isolated data set from finance industry employees in Islamabad, Pakistan. The findings of this investigation, centered on the PROCESS technique, indicate that intellectual capital mediates the relationship between the requirement for knowledge responsiveness and operational business performance. Creativity was discovered to affect the connection between innovation and functional firm efficiency, while the creative cognitive model was shown to promote the association between knowledge proactiveness