The Impact of Fintech on Economic Growth in Singapore

Abstract

The study examines the impact of financial technology on economic growth in Singapore. Using time-series data on Singapore's financial technology from 2010 to 2022, The study constructs a financial technology index based on a comprehensive set of indicators. Through VAR modeling, the study assesses the effects of financial technology on the interest rate market, consumer market, and investment market, as well as its role in driving economic growth. The results indicate that financial technology has a positive impact on Singapore's economic growth. The calculation of the Fintech Index reveals a continuous improvement in Singapore's level of financial technology. The VAR analysis demonstrates that the development of financial technology has significant impacts on the interest rate market, consumer market, and investment market in Singapore. This suggests that the advancement of financial technology helps lower market interest rates, enhances the experiences of consumers and investors, and promotes consumption and investment growth. These findings highlight the significant role of financial technology in driving economic growth in Singapore.