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The Emergence of the Global Fintech Market: Economic and Technological Determinants

37 Pages Posted: 27 Aug 2016 Last revised: 5 Dec 2016

Christian Haddad

Univ. Lille, SKEMA Business School, EA4112 - LSMRC

Lars Hornuf

University of Bremen - Faculty of Business Studies and Economics; Max Planck Institute for Innovation and Competition; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: August 25, 2016

Abstract

We investigate the economic and technological determinants inducing entrepreneurs to establish ventures with the purpose of reinventing financial technology (fintech). We find that countries witness more fintech startup formations when the latest technology is readily available, capital markets are well-developed, and people have more mobile telephone subscriptions. Furthermore, the available labor force has a positive impact on the development of this new market segment. Finally, the more sound the financial system, the lower the number of fintech startups in a country. Overall, the evidence suggests that fintech startup formation need not be left to chance, but active policies can influence the emergence of this new sector.

Keywords: Fintech, Entrepreneurship, Startups, Financial institutions

JEL Classification: L26, K2, O3

Suggested Citation

Haddad, Christian and Hornuf, Lars, The Emergence of the Global Fintech Market: Economic and Technological Determinants (August 25, 2016). CESifo Working Paper Series No. 6131. Available at SSRN: https://ssrn.com/abstract=2830124

Christian Haddad

Univ. Lille, SKEMA Business School, EA4112 - LSMRC ( email )

Avenue Willy Brandt, Euralille
Lille, 59777
France

Lars Hornuf (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

University of Bremen - Faculty of Business Studies and Economics ( email )

Bremen, D-28359
Germany
+49 89 20348619 (Phone)

HOME PAGE: http://www.hornuf.com

Max Planck Institute for Innovation and Competition

Marstallplatz 1
Munich, 80539
Germany

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