## Role of FinTech Adoption, HR Competency Potential, Service Innovation, and Firm Growth in the Banking Sector: An Integrated Entropy-TOPSIS Approach### AbstractThe integration of financial technology (FinTech), along with the enhancement of human resource (HR) competencies, service innovation, and firm growth, plays a crucial role in the banking industry's development. Despite their significance, obtaining reliable results is often challenging due to the complex, high-dimensional correlations among various features that influence the industry. To address this challenge, this research introduces a hybrid Multi-Criteria Decision-Making (MCDM) model that integrates the Entropy-Weighted Method (EWM) and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). The primary objective of this study is to systematically evaluate and rank multiple alternatives based on key criteria using the EWM-TOPSIS approaches. Specifically, the analysis considers eleven multifaceted characteristics and eight potential alternatives (A1 to A8), revealing the significant influence of the proposed MCDM approaches in assessing FinTech adoption, HR competency, service innovation, and firm growth. The findings underscore the effectiveness of the entropy-TOPSIS approaches in providing a structured analysis for smarter and well-informed decision-making. Ultimately, this research proposes the best alternative from the evaluated options, contributing valuable insights into the future role of FinTech, HR competencies, service innovation, and firm growth within the banking sector.### IntroductionIn today's evolving technological context, numerous industry activities must undergo digitalization. By using modern technological systems (e-banking), service innovation (e-branch shops), and employees, banking institutions may introduce alternative service mediums while simultaneously lowering operational expenses by decreasing the requirement for branch offices and employees. Human and banking sector reliance on technology has evolved noticeably as a consequence of the most obvious advances in computer innovation, which has been found by studying different articles. As shareholders and corporate officers predict that banking markets will employ innovation to solve shortcomings in the post-crisis scenario and upend conventional wisdom, the banking industry will surely experience this changing experience. This category of innovation has been given the moniker "finance technology," or, more frequently, "FinTech." Fintech innovations and HR competency potential have gained importance in the banking industry since they offer more sophisticated techniques to engage with consumers and gather tangible data to help with lending decisions [1] and solve customer-related issues efficiently.The banking sector's continuous digitalization is crucial for enabling institutions to enter a data economy populated by tech-savvy consumers. Traditional and cutting-edge banking services are being provided by technologies and innovations, making the shift from the "business as normal" philosophy easier. This shift is facilitated by the use of technologies and innovations, ensuring the success of the banking sector. The adoption of FinTech and service innovations in the banking sector [2] focuses on various topics such as theft, anti-money laundering, cyberattacks, performance outcomes, advertising strategies, and customized services. The sector is also aiming to lower operational costs, balance rapidity and adaptability, and adopt new approaches like FinTech, HR capabilities, and service improvement. The traditional banking paradigm is being replaced with a technologically modified one, requiring advancements in database administration and intelligent wealth creation.Researchers face challenges in evaluating FinTech adoption, HR competency potential, service innovation, and firm growth's impact on the banking sector. This study introduced a well-known hybrid MCDM model for the efficient evaluation of these innovations and their adoption in the banking sector. The hybrid model includes an integrated EWM and TOPSIS to solve the multi-criteria issue and arrange the alternatives sequentially 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 choice is identified among several options and an efficient decision is made.The research [3] have explored the impact of some of the most tremendous scientific resources used by banks on their marketing strategy, with a concentration on the advancement of human assets and conventional advantage ratio in the field. Knowing this in advance, the proposed article will examine how digitalization has affected the efficacy and strength of social resources in the European banking system in hopes of addressing the shortage in the literature on intangible resources that this latter aspect represents. The analysis for the proposed survey indicates how financial institutions are shifting away from a more wealthy business plan and away from millennia of corporate practices. It also demonstrates how a surge in the skill level and quantity of exceptionally competent human assets is forming the latest concept. The study [4] have offered a succinct summary of the evolving business and FinTech attitudes that banks have developed as a reaction to rivalry from the fintech sector. It emphasizes the crucial principle that one must take into account the connections between FinTech and restructurings and organizational values in order to appropriately assess the FinTech breakthrough trend. Against the backdrop of FinTech innovation, business structure and internal architecture for banks have received little interest among scholars up to now. Yet, by developing a structure through which these linkages may be comprehended, the proposed study demonstrates their significance and value.Intellectuals, corporations, and financiers are becoming more interested in the "FinTech" paradigm, which combines the banking industry with digital technologies. Fintech is frequently covered in the media, which affects public perception and raises knowledge, but real proof must back up this comprehension. In order to evaluate the existence of FinTech advancements, the proposed study might investigate five Swiss FinTech companies within the theoretical structure of existing FinTech knowledge and its characteristics. As a result, the analysis broadens the comprehension of fintech and creates a favorable environment for further investigation. The primary objective of the proposed research [5] is to ascertain if FinTech will revolutionize the monetary system in a way that enhances the health and viability of the banking sector. In hopes of understanding the forces driving fintech and its possible implications, the research advised concentrating on the European financial sector. The analysis offers several helpful guidelines for legislators and European financial institutions intending to boost their standing in modern finance and keep an eye on the potential complications. The paradigm for customer service has long since changed as a result of digitization in the banking sector. Experts in the fields of computer management and banking are studying the impact of technological progress on fintech organizations. Concerning these cutting-edge and distinctive corporate activities [6] have done extensive studies on the most current advancements in digital banking analysis. The Financial Technology Cube offers a methodology for examining this area and comprises the main components of fintech and financial innovation, including the entities involved, the technology and technical theories employed, and the pertinent business processes. This method makes it possible for scientific research to be organized in relation to one another, encourages the recognition of potential research topics, and helps those in academia working in financial development to find their way.The existing work concentrates on the incorporation of financial technologies in traditional banking systems; nevertheless, it is unable to present a thorough assessment system that combines cutting-edge technologies like blockchain and artificial intelligence with tried-and-true growth factors like customer service and regulatory compliance. Furthermore, few studies are using MCDM approaches to investigate mechanisms for dynamic criteria weighting in conjunction with sustainable practices. The purpose of this research is to propose an adaptable MCDM approach to assessing the various alternatives by considering multifaceted criteria and also evaluate how FinTech adoption in the banking industry interrelates with service innovation, HR competence enhancement, and organizational growth. The following are the main goals of this research article;* To review the adoption of FinTech, service innovation, HR competency potential, and firm growth in the banking sector.* To propose an effective multifaceted approach for the intersection and selection of a better alternatives affecting the banking sector's performance and development.* To rank various alternatives operating within the banking sector by evaluating and selecting the most effective characteristics derived from the analysis.* 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.* Finally, to identify the most effective alternative that significantly contributes to enhancing the environmental efficiency and overall growth of the banking sector.The article is divided into the following sections for the remaining portions. The next section looks at existing works of literature. The study methodology and extensive computations are presented in the third section. The Fourth section contains the results as well as an explanation of the research methods. Our debate comes to a close in the Fifth section, where we also summarise the results and suggest future study areas.### 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. Besides the increasing needs it confronts, Fintech lending's explosive development is crucial for expanding a person's ability to obtain financing. The paper [8] analyzes the relationship between HRM practices and the intention to remain in the organization, as well as the intermediary effects of two variables: purpose similarity and a cognitive approach to HRM. Applying a sequential framework to a sample of 265 accredited auditors working for CPA organizations, we reveal that expertise and organizational dedication moderate the influence of mobility and recognition. Furthermore, the interaction between information-sharing, fair remuneration, and the decision to remain is mediated by organizational commitment. Training significantly impacts stay desire. These outcomes pave the way for the creation