Surviving the Fintech Disruption
104 Pages Posted: 7 Jul 2021 Last revised: 28 Dec 2023
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Surviving the Fintech Disruption
Surviving the Fintech Disruption
Date Written: September 15, 2024
Abstract
We examine the impact of fintech on firm labor demand, job turnover, and firm performance. Occupations with higher exposure to fintech experience a net decline in job postings and employment, though both complementary and substitutive effects emerge across different sectors. Fintech blurs traditional industry boundaries, creating demand for workers with a combination of finance and technology skills. In response, firms upskill through hiring, reallocate talent internally, and pivot innovation to new areas. As a result, firms are better equipped to absorb the shock than individual workers, with innovative firms even experiencing growth in employment, sales, and productivity upon fintech disruption.
Keywords: Fintech, Creative Destruction, Jobs, Tasks, Technology, Innovation
JEL Classification: J23, O33, G30
Suggested Citation: Suggested Citation