Surviving the Fintech Disruption

63 Pages Posted: 27 Apr 2021

See all articles by Wei Jiang

Wei Jiang

Columbia Business School - Finance and Economics; ECGI; NBER

Yuehua Tang

University of Florida - Department of Finance

Rachel Xiao

Georgia State University - Department of Finance

Vincent Yao

Georgia State University - J. Mack Robinson College of Business

Date Written: April 26, 2021

Abstract

This paper studies how demand for labor reacts to financial technology (fintech) shocks based on comprehensive databases of fintech patents and firm job postings in the U.S. during the past decade. We first develop a measure of fintech exposure at the occupation level by intersecting the textual information in job task descriptions and fintech patents. We then document a significant decline of job postings in the most exposed occupations, and an increase in the industry as well as the geographical concentration of these occupations. Firms resort to an upskilling strategy in face of the fintech disruption, requiring "combo" (finance and software) skills, higher education attainments, and longer work experiences in the hiring of fintech-exposed jobs. Financial firms and those with high innovation outputs are able to offset the disruptive effect from the fintech shock. Among innovating firms, however, only inventors (but not acquisition-driven innovators) experience growth in hiring, sales, investment, and enjoy better returns on assets.

Keywords: Fintech, Disruption, Jobs, Tasks, Technology, Innovation

JEL Classification: J23, O33, G30

Suggested Citation

Jiang, Wei and Tang, Yuehua and Xiao, Rachel and Yao, Vincent, Surviving the Fintech Disruption (April 26, 2021). Available at SSRN: https://ssrn.com/abstract=

Wei Jiang

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States
(212) 854-5553 (Phone)

ECGI ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Yuehua Tang

University of Florida - Department of Finance ( email )

P.O. Box 117168
Gainesville, FL 32611
United States

HOME PAGE: http://sites.google.com/site/yuehuatang

Rachel Xiao (Contact Author)

Georgia State University - Department of Finance ( email )

University Plaza
Atlanta, GA 30303-3083
United States

Vincent Yao

Georgia State University - J. Mack Robinson College of Business ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
157
Abstract Views
436
PlumX Metrics