## **Digitalization and Growth: Evaluating FinTech, HR Competency, and Service Innovation in the Banking Sector Using Entropy and TOPSIS**### IntroductionThe banking industry is undergoing a significant transformation due to advancements in digital technology. To meet these challenges and enhance their efficiency and growth, banks are embracing FinTech, improving HR capabilities, and driving service innovation. To evaluate these interconnected factors, this research proposes a hybrid Multi-Criteria Decision-Making (MCDM) model incorporating Entropy and TOPSIS approaches.### Research Objectives- To examine the adoption of FinTech, HR competency potential, service innovation, and firm growth in the banking sector.- To develop an integrated multi-faceted evaluation framework for selecting the most suitable alternatives that drive growth in the banking industry.- To rank various alternatives using the Entropy-Weighted Method (EWM) for criterion weight determination and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) for alternative ranking.- To identify the most effective alternative that contributes to environmental efficiency and overall growth in the banking sector.### MethodologyThe proposed MCDM model combines Entropy and TOPSIS methodologies. Entropy determines the relative importance of each criterion, while TOPSIS evaluates alternatives and ranks them based on their proximity to an ideal solution. Eleven criteria (fintech adoption, cost, agility, and managerial decisions) and eight alternatives (A1 to A8) were selected for evaluation.### Results- The Entropy-based analysis revealed that financial innovation had the highest weight (11.1%), followed by risk optimization and credibility.- The TOPSIS ranking identified Alternative A6 as the most suitable option, with a high performance score of 0.553.- Alternative A6 exhibited strengths in fintech adoption, HR competency, service innovation, and firm growth.### DiscussionThe findings indicate that FinTech, HR competencies, service innovation, and firm growth play a crucial role in the banking sector. The proposed MCDM approach provides a comprehensive evaluation mechanism to assist banks in decision-making and strategy formulation. Alternative A6 emerged as the most effective and competitive option, offering substantial advantages in cost optimization, revenue generation, and operational efficiency.### ConclusionThe study underscores the importance of integrating FinTech, HR capabilities, service innovation, and firm growth in the banking sector. The Entropy-TOPSIS framework enables objective evaluation and ranking of alternatives, ensuring informed decision-making by bankers and stakeholders. The research contributes to the advancement of MCDM applications in the financial industry and provides valuable insights for improving organizational growth and sustainability.