Download This PaperThe Economic Forces Driving FinTech Adoption across Countries
Forthcoming chapter in The Technological Revolution in Banking, edited by Michael King (University of Victoria) and Richard Nesbitt (University of Toronto) for the University of Toronto Press, in 2020.
20 Pages Posted: 10 Jan 2020
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The Economic Forces Driving Fintech Adoption Across Countries
The Economic Forces Driving FinTech Adoption across Countries
Date Written: January 6, 2020
Abstract
FinTech is being adopted across markets worldwide – but not evenly. Why not? This paper reviews the evidence. In some economies, especially in the developing world, adoption is being driven by an unmet demand for financial services. FinTech promises to deliver greater financial inclusion. In other economies, adoption can be related to the high cost of finance, a supportive regulatory environment, and other macroeconomic factors. Finally, demographics play an important role, as younger cohorts are more likely to trust and adopt FinTech services. Where FinTech helps to make the financial system more inclusive and efficient, this could benefit economic growth. Yet the market failures traditionally present in finance remain relevant, and may arise in new guises.
Keywords: FinTech, digital innovation, financial inclusion, financial regulation
JEL Classification: E51, G23, O33
Suggested Citation: Suggested Citation