This study investigates the relationship between Financial Technology and bank financial performance, focusing on profitability, market valuation, and financial risk. Using a dataset from 11 countries in the Organization of Islamic Cooperation (OIC) from 2010 to 2022, we investigate the impact of country- and bank-level Fintech adoption on market performance indicators such as Tobin’s Q and the Market-to-Book ratio. Our findings indicate that Fintech implementation at the country level significantly harms short-term profitability, especially in emerging markets, due to high upfront costs. However, these investments also enhance market expectations for long-term profitability, as shown by the MTB ratio. The study highlights the importance of recognizing the time lag between adopting technology and achieving profitability, alongside the regulatory and competitive challenges banks encounter during this transition. Banks should prioritize strategic long-term planning and investment in digital capabilities to fully realize Fintech’s benefits.