Areas and activities influenced by the fintech industry
Keywords:
fintech development, economic development, economic growth, poverty, financial inclusion
Abstract
The paper aims to present the areas and activities which are positively affected by the development of the fintech industry. The industry has experienced major growth since the 2007/08 crisis, driven by a number of factors such as changing demographics, technological advances, changing customer preferences, and favorable environments in some regions. Nowadays, nearly all financial products and services offered by traditional banks and financial institutions are also offered by fintech companies in a more efficient and user-friendly manner.
Considering the fintech offerings and their impact, the research shows that fintech companies contribute toward the support and promotion of entrepreneurial activities and business activities and offer financial products to SMEs. Moreover, by improving the financial inclusion of the unbanked, there are implications that fintech segments lessen poverty and create employment.
Downloads
Download data is not yet available.
References
1. World Bank and CCAF. The Global Covid-19 FinTech Regulatory Rapid Assessment Report, World Bank Group and the University of Cambridge, 2020.
2. Zalan T, Toufaily E. The promise of Fintech in emerging markets: Not as disruptive, Contemporary Economics, ISSN 2300-8814, University of Finance and Management in Warsaw, Faculty of Management and Finance, Warsaw, Vol. 11, Issue. 4, 2017; pp. 415-430, http://dx.doi.org/10.5709/ce.1897-9254.253
3. Eira A. 81 Key Fintech Statistics 2021/2022: Market Share & Data Analysis, 2020. Available at: https://financesonline.com/fintech-statistics/
4. Fintechnews Middle East. Dissecting Fintech Opportunities in Middle East and Africa,2019. Available at: https://fintechnews.ae/4107/abudhabi/fintech-opportunities-middle-east/
5. Cumming DJ, Schwienbacher A. Fintech venture capital. Corporate Governance: AN International Review, 26(5), 2018; pp. 374–389.
6. Cornelli G, et al. Funding for fintechs: patterns and drivers, BIS Quarterly Review, September, 2021; pp. 31 – 43.
7. Jonas Lopes N. et al. An Overview of FinTechs: Their Benefits and Risks Association of Supervisors of Banks of the Americas 2017. Association of Supervisors of Banks of the Americas, 2017.
8. Rose Innes C, Andrieu J. Banking on FinTech in Emerging Markets, EM Compass; Note 109, International Finance Corporation, Washington, DC, 2022. Available at: https://openknowledge.worldbank.org/handle/10986/36873 License: CC BY-NC-ND 3.0 IGO.
9. Bates R. Banking on the future: an exploration of FinTech and the consumer interest, A report for Consumers International, 2017.
10. Moreira-Santos D, Au-Yong-Oliveira M, Palma-Moreira, A. Fintech Services and the Drivers of Their Implementation in Small and Medium Enterprises. Information 2022, 13, 409. https://doi.org/10.3390/info13090409
11. Schindler J. FinTech and Financial Innovation: Drivers and Depth, Finance and Economics Discussion Series 2017-081. Washington: Board of Governors of the Federal Reserve System, 2017. https://doi.org/10.17016/FEDS.2017.081
12. Xiuping H, Yiping H. Understanding China’s Fintech Sector: Development, Impacts and Risks, Faculty of Business, University of Nottingham Ningbo China, Informa UK Limited, 2020.
13. Yong Jae S, Yongrok C. Feasibility of the Fintech Industry as an Innovation Platform for Sustainable Economic Growth in Korea. Sustainability, 11, 5351, 2019. https://doi.org/10.3390/su11195351
14. Ekote Nelson N, Maeda Y. Analyzing the impact of FinTech on the Financial Service Industry with respect to its Payment and Settlement Service. A comparative study between Japan and Cameroon, 2017.
15. Eça A, et al. The real effects of FinTech lending on SMEs: evidence from loan applications, ECB Working Paper Series No 2639, 2022. https://doi.org/10.2866/992620
16. Kässi O, et al. How many online workers are there in the world? A data-driven assessment [version 1; peer review: 2 approved, 2 approved with reservations] Open Research Europe 2021, 1:53 https://doi.org/10.12688/openreseurope.13639.1
17. Burke A. The Freelance Project and Gig Economies of the 21st Century, Center For Research on Self-Employment, 2019.
18. Saraswati, B. D., et al. The effect of financial inclusion and financial technology on the effectiveness of the Indonesian monetary policy, Business: Theory and Practice, 21(1), 2020; pp. 230-243. https://doi.org/10.3846/btp.2020.10396
19. Athoillah N.A. Fintech contribution to Indonesia's economic growth, MPRA Paper No. 97884, University Library of Munich, Germany, 2019.
20. Bergara M, Ponce J. How Disruptive are Fintechs?. Monetaria, July-December, 2017; pp. 203 – 241.
21. Haddad C, Hornuf L. The Impact of Fintech Startups on Financial Institutions' Performance and Default Risk, CESifo Working Paper, No. 9050, Center for Economic Studies and Ifo Institute (CESifo), Munich, 2021.
22. Ye Y, et al. Financial technology as a driver of poverty alleviation in China: Evidence from an innovative regression approach, Journal of Innovation & Knowledge. Volume 7, Issue 1, 2022. https://doi.org/10.1016/j.jik.2022.100164
23. Appiah-Otoo, I.; Song, N. The Impact of Fintech on Poverty Reduction: Evidence from China. Sustainability, 13, 5225, 2021. https://doi.org/10.3390/su13095225
24. Emara N, Mohieldin M. Beyond the Digital Dividends: Fintech and Extreme Poverty in the Middle East and Africa, Topics in Middle Eastern and African Economies Proceedings of Middle East Economic Association Vol. 23, Issue No. 2, 2021.
25. Demirgüç-Kunt A, Klapper L. Measuring financial inclusion: The global findex database, World Bank Policy Research Working Paper. No 6025, 2012. https://openknowledge.worldbank.org/handle/10986/6042
26. Jack W, Suri T. Risk sharing and transactions costs: Evidence from Kenya's mobile money revolution. The American Economic Review, 104 (1), 2014; pp. 183-223. 27. Shin, Y.J.; Choi, Y. Feasibility of the Fintech Industry as an Innovation Platform for Sustainable Economic Growth in Korea. Sustainability 2019, 11, 5351. https://doi.org/10.3390/su11195351
28. Khiewngamdee, C, Yan, H.D., The role of Fintech e-payment on APEC economic development. In Journal of Physics: Conference Series, Vol. 1324, No. 1, p. 012099, IOP Publishing, 2019.
29. Udo E.S, et al. Effect of financial technology on economic growth in Nigeria. Journal of Xi’an Shiyou University, Natural Science Edition. Volume 18, Issue 3. ISSN: 1673-064X, 2022; pp. 390-401.
30. Shapiro A. F, et al. Fintech Entry, Firm Financial Inclusion, and Macroeconomic Dynamics in Emerging Economies. Inter-American Development Bank, Working Paper Series No. IDB- WP -1301, 2022. Available at: https://publications.iadb.org/publications/english/document/Fintech-Entry-Firm-Financial-Inclusion-and-Macroeconomic-Dynamics-in-Emerging-Economies.pdf
2. Zalan T, Toufaily E. The promise of Fintech in emerging markets: Not as disruptive, Contemporary Economics, ISSN 2300-8814, University of Finance and Management in Warsaw, Faculty of Management and Finance, Warsaw, Vol. 11, Issue. 4, 2017; pp. 415-430, http://dx.doi.org/10.5709/ce.1897-9254.253
3. Eira A. 81 Key Fintech Statistics 2021/2022: Market Share & Data Analysis, 2020. Available at: https://financesonline.com/fintech-statistics/
4. Fintechnews Middle East. Dissecting Fintech Opportunities in Middle East and Africa,2019. Available at: https://fintechnews.ae/4107/abudhabi/fintech-opportunities-middle-east/
5. Cumming DJ, Schwienbacher A. Fintech venture capital. Corporate Governance: AN International Review, 26(5), 2018; pp. 374–389.
6. Cornelli G, et al. Funding for fintechs: patterns and drivers, BIS Quarterly Review, September, 2021; pp. 31 – 43.
7. Jonas Lopes N. et al. An Overview of FinTechs: Their Benefits and Risks Association of Supervisors of Banks of the Americas 2017. Association of Supervisors of Banks of the Americas, 2017.
8. Rose Innes C, Andrieu J. Banking on FinTech in Emerging Markets, EM Compass; Note 109, International Finance Corporation, Washington, DC, 2022. Available at: https://openknowledge.worldbank.org/handle/10986/36873 License: CC BY-NC-ND 3.0 IGO.
9. Bates R. Banking on the future: an exploration of FinTech and the consumer interest, A report for Consumers International, 2017.
10. Moreira-Santos D, Au-Yong-Oliveira M, Palma-Moreira, A. Fintech Services and the Drivers of Their Implementation in Small and Medium Enterprises. Information 2022, 13, 409. https://doi.org/10.3390/info13090409
11. Schindler J. FinTech and Financial Innovation: Drivers and Depth, Finance and Economics Discussion Series 2017-081. Washington: Board of Governors of the Federal Reserve System, 2017. https://doi.org/10.17016/FEDS.2017.081
12. Xiuping H, Yiping H. Understanding China’s Fintech Sector: Development, Impacts and Risks, Faculty of Business, University of Nottingham Ningbo China, Informa UK Limited, 2020.
13. Yong Jae S, Yongrok C. Feasibility of the Fintech Industry as an Innovation Platform for Sustainable Economic Growth in Korea. Sustainability, 11, 5351, 2019. https://doi.org/10.3390/su11195351
14. Ekote Nelson N, Maeda Y. Analyzing the impact of FinTech on the Financial Service Industry with respect to its Payment and Settlement Service. A comparative study between Japan and Cameroon, 2017.
15. Eça A, et al. The real effects of FinTech lending on SMEs: evidence from loan applications, ECB Working Paper Series No 2639, 2022. https://doi.org/10.2866/992620
16. Kässi O, et al. How many online workers are there in the world? A data-driven assessment [version 1; peer review: 2 approved, 2 approved with reservations] Open Research Europe 2021, 1:53 https://doi.org/10.12688/openreseurope.13639.1
17. Burke A. The Freelance Project and Gig Economies of the 21st Century, Center For Research on Self-Employment, 2019.
18. Saraswati, B. D., et al. The effect of financial inclusion and financial technology on the effectiveness of the Indonesian monetary policy, Business: Theory and Practice, 21(1), 2020; pp. 230-243. https://doi.org/10.3846/btp.2020.10396
19. Athoillah N.A. Fintech contribution to Indonesia's economic growth, MPRA Paper No. 97884, University Library of Munich, Germany, 2019.
20. Bergara M, Ponce J. How Disruptive are Fintechs?. Monetaria, July-December, 2017; pp. 203 – 241.
21. Haddad C, Hornuf L. The Impact of Fintech Startups on Financial Institutions' Performance and Default Risk, CESifo Working Paper, No. 9050, Center for Economic Studies and Ifo Institute (CESifo), Munich, 2021.
22. Ye Y, et al. Financial technology as a driver of poverty alleviation in China: Evidence from an innovative regression approach, Journal of Innovation & Knowledge. Volume 7, Issue 1, 2022. https://doi.org/10.1016/j.jik.2022.100164
23. Appiah-Otoo, I.; Song, N. The Impact of Fintech on Poverty Reduction: Evidence from China. Sustainability, 13, 5225, 2021. https://doi.org/10.3390/su13095225
24. Emara N, Mohieldin M. Beyond the Digital Dividends: Fintech and Extreme Poverty in the Middle East and Africa, Topics in Middle Eastern and African Economies Proceedings of Middle East Economic Association Vol. 23, Issue No. 2, 2021.
25. Demirgüç-Kunt A, Klapper L. Measuring financial inclusion: The global findex database, World Bank Policy Research Working Paper. No 6025, 2012. https://openknowledge.worldbank.org/handle/10986/6042
26. Jack W, Suri T. Risk sharing and transactions costs: Evidence from Kenya's mobile money revolution. The American Economic Review, 104 (1), 2014; pp. 183-223. 27. Shin, Y.J.; Choi, Y. Feasibility of the Fintech Industry as an Innovation Platform for Sustainable Economic Growth in Korea. Sustainability 2019, 11, 5351. https://doi.org/10.3390/su11195351
28. Khiewngamdee, C, Yan, H.D., The role of Fintech e-payment on APEC economic development. In Journal of Physics: Conference Series, Vol. 1324, No. 1, p. 012099, IOP Publishing, 2019.
29. Udo E.S, et al. Effect of financial technology on economic growth in Nigeria. Journal of Xi’an Shiyou University, Natural Science Edition. Volume 18, Issue 3. ISSN: 1673-064X, 2022; pp. 390-401.
30. Shapiro A. F, et al. Fintech Entry, Firm Financial Inclusion, and Macroeconomic Dynamics in Emerging Economies. Inter-American Development Bank, Working Paper Series No. IDB- WP -1301, 2022. Available at: https://publications.iadb.org/publications/english/document/Fintech-Entry-Firm-Financial-Inclusion-and-Macroeconomic-Dynamics-in-Emerging-Economies.pdf
Published
2022-10-25
Section
Management and Business
