Development Of Fintech Research Articles

Forging a path to sustainability: the impact of Fintech on corporate ESG performance

Emerging development of Fintech has raised widespread attention to its important role in shaping corporate ESG performance despite little in-depth research. We study the impact of Fintech on corporate ESG performance using a comprehensive dataset covering major China’s firms over the past decade. The Fintech development at the city level is measured via an entropy method based on information gathering from firms and households. Drawn on a panel data estimation with two-way fixed effects, our findings show that corporate ESG performance improves with Fintech development. Promotion of green innovation, mitigation of financial mismatch, and environmental uncertainty are found to serve as the three mediating channels that drive the relationship between Fintech and corporate ESG performance. The positive impact of Fintech is shown to be more pronounced in firms with non-high-tech, non-high-polluting, and labor-intensive features. Further analysis indicates that Fintech strengthens in the enterprises’ green value through perspectives of green total factor productivity and green investment.

The Nexus of Crowdfunding and e-Wakaf to Islamic Fintech in Indonesia in the Era of Industrial Revolution 5.0

This study analyses the contribution of digitalisation in Islamic finance through the application of Islamic crowdfunding and e-wakaf instruments in supporting the development of Islamic fintech in Indonesia, especially in the era of the Industrial Revolution 5.0. Digitalisation in the Islamic finance sector plays a strategic role in expanding access to financial inclusion and facilitating more effective community involvement in sharia-based economic activities. Using the Robust Least Squares (RLS) method, this study utilises secondary data for the period 2018 to 2023 to evaluate the impact of Islamic crowdfunding and e-wakaf on the growth of Islamic fintech. The results show that Islamic crowdfunding significantly expands access to alternative funding, especially for small and medium enterprises (SMEs), while e-wakaf improves transparency and efficiency of waqf asset management through digital technology. These two instruments simultaneously contribute positively to the strengthening of the Islamic fintech ecosystem in Indonesia, creating a strong foundation for broader and sustainable financial inclusion. The findings provide important perspectives for the development of innovative policies and strategies in advancing the Islamic financial sector in the digital era.

Does the development of FinTech increase the risk of private lending ? Evidence from China

Does the development of FinTech increase the risk of private lending ? Evidence from China

Fintech’s role in carbon emission efficiency: dynamic spatial analysis

Against the backdrop of digitization and global warming, fintech plays a crucial role in accelerating the growth of green finance, driving innovation in the financial industry, and catalyzing the low-carbon transformation of economic activities. This paper utilizes city panel data from 2007 to 2019 to examine the direct impact of fintech on carbon emission efficiency (CEE), the transmission channels of green technological innovation and green finance, and the spatial spillover effects, using dynamic panel models, mediation effect models, and dynamic spatial Durbin models (SDM). The study finds that: (i) Fintech significantly improves CEE, and this conclusion remains robust after accounting for potential endogeneity issues and conducting robustness tests. (ii) Mechanism analysis reveals that green finance and green technological innovation are the primary channels through which fintech influences CEE. (iii) Results from the dynamic SDM model indicate that fintech has a significant positive spatial spillover effect on CEE, with the long-term spillover effect being smaller than the short-term spillover effect. (iv) Heterogeneity analysis reveals that fintech’s improvement effect on CEE is mainly evident in eastern regions, emerging first-tier and first-tier cities, and non-resource-based cities. Our research provides new insights for policymakers on achieving China’s dual-carbon goals through the promotion of fintech development, green finance, and green technological innovation. It also aids in the coordinated development of fintech among cities and the formulation of differentiated policies, providing a theoretical foundation and empirical support for future research.

Regional fintech development, financing constraints, and enterprise innovation: evidence from China’s A-share non-financial listed companies

ABSTRACT This study uses a fixed effect model to examine the impact based on a sample of non-financial A-share listed companies in the Shanghai Stock Exchange and Shenzhen Stock Exchange from 2010 to 2019. The empirical results show that regional fintech development has a significantly positive effect on enterprise innovation, while heterogeneity analysis results indicate that this effect is more significant for small and medium-sized enterprises and secondary industry fields. Further research finds that regional fintech development not only has significant spatial autocorrelation, but it also has spillover effects on enterprise innovation. Additionally, the mechanism test shows that financing constraints are part of the mediating factor between regional fintech and enterprise innovation. We conclusively present three recommendations for enriching the development of regional fintech, thus allowing for increased innovation potential and the sustainable growth of companies.

Bank Fintech and firm leverage adjustment speed: Evidence from China

The recent development of Fintech has greatly changed the operation and loan management of commercial banks, which has had a significant impact on firm financing and governance. This paper analyzes the impact of the rising use of bank Fintech on leverage adjustment speed. The results show that bank Fintech accelerates firm leverage adjustment speed. This effect is more pronounced for under-leveraged firms, high-growth firms, non-state-owned firms and firms located in regions with more developed institutions. Transmission channel tests show that bank Fintech can accelerate leverage adjustment speed by alleviating firm-level financial constraints and agency problems. Finally, bank Fintech improves firm performance by accelerating leverage adjustment speed. Our work extends the literature on Fintech and dynamic trade-off theory and has implications for banking regulations and Fintech development.

Evolution Of The Indian Digital Payment Ecosystem And Its Global Impact: A Comparative Analysis And The Role Of Microfinance

This research seeks to understand how the Indian digital payments landscape has evolved in the last decade and what is changing in the financial world at large scale because of it. Long leaps have been made in the Indian fintech space over the years, mainly from crucial government initiatives, technological innovations, and a growing user base depending on digital payment platforms. This paper also situates India as a leader in the world of fintech innovation and uses cross-national comparisons to explore economic and social impacts and the global consequences of India's digital payment model. The paper finds that in creating a model for digital payments, India has set global standards for the development of fintech while increasing domestic financial inclusion (Kanungo & Gupta, 2021). It also tells the future trends and the prospect of India's digital payment ecosystem going global in influencing financial practices.

Risk Challenges and Regulatory Approaches in Fintech Data Application Regulation

In the era of data capital, the combination of the traditional financial sector and emerging technological forces has forged a fintech industry with great potential. In the process of its prosperous development,ethical risks such as data ethical dilemma have arisen, and legal problems such as legislation, law enforcement, justice, and law-abiding have appeared.How to solve the multi-dimensional challenges brought about by ethical and legal risks requires not only the participation of multi-party subjects to formulate the relevant industry ethical standards and legal system, and to strengthen the supervision of relevant ethical and legal risks, but also the deepening of the corresponding judicial remedial system, and the formation of a good and orderly social ethical and moral atmosphere and law-abiding.It is also necessary to deepen the corresponding judicial relief system, so as to form a good and orderly social ethical and moral atmosphere and law-abiding environment, and help the healthy development of fintech.

The Impact of Fintech on Urban Industrial Pollution: A Quasi-Natural Experiment Based on Pilot Policies Integrating Technology and Finance

Against the backdrop of accelerating global industrialization and the increasingly severe issue of industrial pollution, reducing industrial pollution has become a key topic in sustainable development. Fintech, with its advantages of high efficiency, low cost, inclusiveness, and ability to reduce information asymmetry, has gained widespread attention and rapid development globally. Given the swift advancement of fintech, it is important to study its impact on urban industrial pollution. This paper, based on data from 281 Chinese cities between 2007 and 2021, selects cities included in the 2011 and 2016 "Technology and Finance Integration" pilot policies as the treatment group. Using a difference-in-differences model, it systematically analyzes the relationship between the development of fintech and urban industrial pollution. The study further explores the variations in fintech's impact on industrial pollution across different regions and types of cities, revealing the potential of fintech in promoting green transformation and reducing industrial pollution.

Critical development of Islamic financial technology ecosystem: lesson learned from financial technology literature

Purpose This study aims to draw lessons from the financial technology (FinTech) ecosystem literature through a systematic literature review. Design/methodology/approach This study systematically studied a sample of 134 articles from the Scopus database to assess the pattern of research development within the scope of the FinTech ecosystem over the last 15 years (2008–2023). Findings The results obtained indicated that the current research focus leads to several aspects: digital technology and financial inclusion, FinTech and customer behavior, FinTech ecosystem, business model, as well as aspects of governance and regulation. In the effort to develop Islamic FinTech, some aspects that might be targeted include aspects of business development and the Islamic FinTech ecosystem in general, extending financial inclusion to governance and managerial implementation of Islamic FinTech itself. Research limitations/implications This research has limitations because it did not focus on the study of more specialized sectors, such as insurance or microfinance institutions, in adopting FinTech, requiring the use of other specifications of institutions in addition to Islamic banking. Practical implications This research has substantial theoretical implications in mapping the intellectual structure of Islamic FinTech research, which has been underexplored by previous researchers, as well as providing essential information about which sectors should be prioritized to encourage inclusiveness and overall performance of financial institutions. Originality/value This research explores more deeply with a comprehensive approach so that it becomes a pioneer in the study of FinTech ecosystem literature for the development of Islamic FinTech.

Bibliometric Analysis of Islamic Crowdfunding: A Literature Review of Its Journey

Background The potential of Islamic crowdfunding to encourage the development of Islamic fintech globally, even in countries with non-Muslim majority populations, needs to be examined in a literature study on this issue. More extensive research is needed regarding the factors that most reliably predict the success of Islamic crowdfunding, such as compliance with Islamic crowdfunding laws, sustainability, and the potential of Islamic finance. This article describes a comprehensive and systematic Literature Review (SLR) regarding papers published in the field of Islamic crowdfunding. This research aims to contribute to a better understanding of Islamic crowdfunding, provide useful information for practitioners, and stimulate further research in the field to increase the success of Islamic crowdfunding. Methods We conducted a review of selected papers to identify gaps and significant issues in Islamic crowdfunding, providing guidance for future researchers. This article review was based on 704 articles retrieved using the keyword “Islamic crowdfunding” from the Scopus database between 2013 and 2022. To minimize bias, we formulated 5 research questions to guide our analysis: RQ1: How do publication and citation rates vary annually? RQ2: How can we determine the most influential studies based on citation counts for each keyword? RQ3: What are the most common subject areas addressed in Islamic crowdfunding literature from 2013 to 2022? RQ4: What are the most frequently used keywords in Scopus documents? RQ5: How are Islamic values discussed in articles related to Islamic crowdfunding? Results The findings of this research demonstrate that Islamic crowdfunding, characterized by interdisciplinary scholarship, has emerged as an increasingly significant alternative for aiding society and the economy. It contributes to poverty alleviation and the development of specific sectors through channels such as crowdfunding for small and medium enterprises and social projects tailored to meet the diverse needs of Muslims. However, the challenge facing the future development of Sharia crowdfunding is that, despite its benefit of increasing community participation in projects aligned with religious values, it also carries the potential risk of investment losses and non-compliance with Sharia principles. Ways to address the current scarcity of Sharia fintech are also needed, ensuring its broader acceptance across all societal levels, and enhancing Muslims’ understanding of compliance with Islamic religious rules, particularly Fiqh law. Conclusion Urgently needed are specific fiqh regulatory guidelines to ensure that Sharia-compliant crowdfunding adheres to Islamic principles. Government support, particularly through legislation in countries where the majority of the population is Muslim, is crucial to enhance public participation and trust in Sharia crowdfunding.

Study on Financing Constraints of Small and Medium-sized Enterprises Eased by Financial Technology

Small and medium-sized enterprises (SMEs) are increasingly important for economic growth, employment opportunities, and innovation. However, the traditional financial system has failed to meet its diverse financing needs, especially in terms of information asymmetry and risk assessment. There is a lack of systematic theoretical analyses and empirical tests on how FinTech affects the financing constraints of SMEs. This paper explores in detail the role of information asymmetry, leverage, and financial sector concentration in the financing process of SMEs through an in-depth study of the mechanism of FinTech's impact on SMEs' financing constraints. The results of the study show that the development of FinTech has a significant effect on alleviating the financing constraints of SMEs. In addition, this study finds that FinTech is particularly effective in alleviating the financing constraints of SMEs in the eastern region. However, in the Western region, the financing difficulties faced by SMEs are still severe. Therefore, the state should vigorously promote the development of fintech, especially in the less developed regions in the West, with a view to reducing the imbalance between the East and West in terms of economic development, and thus promoting balanced development nationwide.

ANALYSIS OF RESEARCH TRENDS IN THE FIELD OF DIGITAL FINANCE BASED ON BIBLIOMETRIC DATA

The spread of digitalisation has led to the global penetration of digital finance in all sectors of the economy. The high relevance of the problem of digital finance necessitates deepening research in this area, in particular by carrying out a comprehensive analysis of the accumulated knowledge in it. The aim of the present research is to reveal the main trends and determinants of the evolution of scientific investigations in the field of digital finance by means of a bibliometric analysis of publications in the journals indexed by the Scopus scientometric database. This study was carried out in accordance with the traditional approach to bibliometric analysis and is aimed at the following objectives: determining the features of the scientific landscape in the field of digital finance by carrying out an evolutionary analysis of publication activity; identification of the main determinants for the development of research by mapping and clustering the existing array of publications using VOSviewer software. The time frame of the study was set as 2008 – 1st quarter of 2024. The results showed that the term «digital finance» is of an interdisciplinary nature. It is found that China is leading in the number of publications in this area, followed by the United States, Great Britain, and India by a notable margin. 8 clusters have been selected that characterise the key research areas. The results of the bibliometric analysis showed that the most significant development of research in the field of digital finance was in 2021-2023, with an emphasis on the development of fintech, banking services and cryptocurrencies. In 2023, it was found that the number of studies on the following issues increased: the Green Deal, COVID-19, ecosystem formation, and green energy. They are considered to be research areas that require further development in the near future.

The Impact of “Fintech + Financial Regulation” Matching Level on Financial Risk: Evidence from China

Preventing financial risk is an important topic that academic circles and the government have paid attention to for a long time. The development of fintech and the improvement of financial regulation will affect the level of financial risk. The relationship between the degree of matching between fintech and financial regulation and financial risk is explored, which is crucial for reducing financial risk. Panel data from 31 provinces in China from 2011 to 2020 is used to explore the impact of fintech and financial regulatory matching levels on financial risk. The study finds that the improved matching level between fintech and financial regulation helps reduce financial risk. The degree of matching between fintech and financial regulation affects financial risk through financial efficiency.

Can financial technology enhance corporate investment efficiency? Evidence from the COVID-19 pandemic

We quantify the FinTech development level by textual analysis. The results show that the intensification of the COVID epidemic adversely affects corporate investment efficiency, but the development of FinTech mitigates such a negative effect by alleviating financing constraints.

The Factor Influencing the Adoption of Fintech in Investment Among Malaysians: A Unified Theory of Acceptance and Use of Technology (UTAUT) Perspectives

Technology has proven to be one of the stronger management and administration platforms for solving all of the conventional problems, including digital financial service management. Besides, it has proven to be the more potent distribution channel, not only for the movement of goods and services but also for digital investment. Nowadays, technology delved deep into the unicorns from the consumer’s Internet segment, which encompasses all business to customers’ Internet and Financial Technology companies. Both have emerged in banking, insurance/takaful, investment, asset management, and foreign exchange, among others, to track their activities in providing financial services. However, investment services also need to be given attention, especially when it comes to human intervention with the use of FinTech. The objective of this paper is to examine the influence of adoption factors for FinTech on investment. The objective will examine FinTech's potential in reducing costs, enhancing human resource efficiency, increasing customer satisfaction, and increasing investment returns. This study is based on the Unified Theory of Acceptance and Use of Technology (UTAUT) framework. This study helps participants in the future of the financial services industry leverage their organizational goals towards a hub of financial and non-financial digital ecosystems as technology advances. The comprehensive development of FinTech is essential to the investment management capabilities of all parties, such as value aggregators, advisors, and competitive access facilitators, in the increasingly challenging field of digital technologies. The combination of effective and systematic investment services could be combined with internal capabilities in FinTech across the investment landscape for external innovations, service providers, and advice facilitators.

The impact of fintech development on the entrepreneurial behavior of farmers: evidence from the China Household Finance Survey

Fintech is disrupting the traditional financial models with the power of technology. Will it solve the problems faced by farmers in starting their own businesses and stimulate the vitality of rural entrepreneurship? In this paper, we focus on the impact of fintech development on the entrepreneurial behavior of farmers in China. First, we theoretically analyze the effects of fintech development on the entrepreneurial behavior of farmers and put forward the corresponding theoretical hypotheses. Second, using data from Baidu search index and the China Household Finance Survey (CHFS), we employ a Probit model to verify our theoretical hypotheses. Our findings suggest that (1) fintech development encourages farmer entrepreneurial behavior, (2) it achieves this by alleviating credit constraints, information constraints, and risk aversion effects, (3) in terms of the type of entrepreneurship, the development of fintech mainly promotes survival entrepreneurship among farmers, while the entrepreneurial effect of fintech is more significant among farmers with low education level, low income level and in the central and western regions. Overall, our study provides timely insights into boosting farmer entrepreneurship in emerging countries such as China by leveraging the potential of fintech.

Time-frequency dependence between fintech and development of carbon neutrality under climate policy uncertainty in China: implications for the ocean carbon sink market

PurposeThis paper explores whether fintech paves the way for the transition to carbon neutrality in the context of China’s climate policy uncertainty (CCPU) and the influence of the ocean carbon sink market.Design/methodology/approachWe apply a novel wavelet analysis technique to investigate the time-frequency dependence between the CCPU index, the CSI (China Securities Index) Fintech Theme Index (CFTI) and the Carbon Neutral Concept Index (CNCI).FindingsThe empirical results show that CCPU and CFTI have a detrimental effect on CNCI in high-frequency bands. Furthermore, in low-frequency domains, the development of CFTI can effectively promote the realization of carbon neutrality.Practical implicationsOur findings show that information from the CCPU and CFTI can be utilized to forecast the movement of CNCI. Therefore, the government should strike a balance between fintech development and environmental regulation and, hence, promote the use of renewable energy to reduce carbon emissions, facilitating the orderly and regular development of the ocean carbon sink market.Originality/valueThe development of high-quality fintech and positive climate policy reforms are crucial for achieving carbon neutrality targets and promoting the growth of the marine carbon sink market.

Can the development of Fintech mitigate non-performing loan risk?

This paper examines how commercial banks’ fintech development can mitigate non-performing loan (NPL) risk. This study adopted a two-fixed model and examined listed commercial banks from 2011 to 2022. Findings indicate that fintech development can mitigate NPL risk through pre-lending and post-loan cost reduction and revenue growth effects. This study contributes to theory and practice for advancing the growth of commercial banks while upholding the stability of the financial system. The findings provide a reference for nations using digital technology to maintain financial stability.

How Does Financial Technology Innovation Impact Business Performance?

ABSTRACT Financial technology (FinTech) is transforming traditional financial services and has a significant impact on business performance. This study investigates how FinTech affects the performance of businesses in China. It constructs a FinTech Index based on data from the Baidu Search Index and aligns this index with the financial data of publicly listed Chinese companies over the period from 2011 to 2021. We find that the development of FinTech positively affects corporate performance improvement through external and internal environment mechanisms. The findings reveal that FinTech significantly contributes to business performance by enhancing information transparency, alleviating financing constraints, and improving the efficiency of corporate investment environments. Additionally, we find that the impact of FinTech development on corporate performance exhibits heterogeneity. The beneficial effects of FinTech on corporate performance are particularly noticeable in in eastern regions, groups with lower levels of centralization, and areas with weaker regulatory oversight. The empirical results can be used to help emerging market firms improve their performance and assist investors in identifying worthwhile investment prospects.