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Financial Technology (FinTech) as a Financial Development Factor in the EU Countries

Author

Listed:
  • Olga Lavrinenko

    (Institute of Humanities and Social Sciences, Daugavpils University, Parades Street 1-421, LV-5401 Daugavpils, Latvia)

  • Edmunds Čižo

    (Department of Economics, Daugavpils University, Parades Street 1-232, LV-5401 Daugavpils, Latvia)

  • Svetlana Ignatjeva

    (Department of Computer Science, Daugavpils University, Parades Street 1-413, LV-5401 Daugavpils, Latvia)

  • Alina Danileviča

    (Institute of Humanities and Social Sciences, Daugavpils University, Parades Street 1-421, LV-5401 Daugavpils, Latvia)

  • Krzysztof Krukowski

    (Faculty of Economics, University of Warmia and Mazury in Olsztyn, Oczapowskiego 4, 10-972 Olsztyn, Poland)

Abstract

The aim of the research is to determine the impact of financial technology (FinTech) on financial development in EU countries. The multi-dimensional nature of the concepts described above and the low availability of data for regions smaller than countries makes it difficult to investigate the link between financial development and FinTech, as well as affects the values of the results due to a certain averaging of indices across countries. The study examines the Global FinTech Index and the Financial Development Index, which characterize financial development in the EU countries, as well as the sub-indices of the Financial Development Index. The article applies frequency analysis and correlation analysis methods. A positive linear relationship between the Global Fintech Index and the Financial Markets Index sub-index, as well as its components Financial Markets Depth Index and Financial Markets Efficiency Index, has been identified. There is also a positive linear relationship between the Global FinTech Index and the Financial Institutions Depth Index, while a negative linear relationship has been identified between the Global FinTech Index and the Financial Institutions Access Index.

Suggested Citation

  • Olga Lavrinenko & Edmunds Čižo & Svetlana Ignatjeva & Alina Danileviča & Krzysztof Krukowski, 2023. "Financial Technology (FinTech) as a Financial Development Factor in the EU Countries," Economies, MDPI, vol. 11(2), pages 1-20, February.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:2:p:45-:d:1054252
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    References listed on IDEAS

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    3. Tran, Quoc Duy & Huynh, Cong Minh, 2022. "ICT and financial development: Empirical evidence from ASEAN countries," MPRA Paper 111462, University Library of Munich, Germany.
    4. Ramona Rupeika-Apoga & Stefan Wendt, 2021. "FinTech in Latvia: Status Quo, Current Developments, and Challenges Ahead," Risks, MDPI, vol. 9(10), pages 1-23, October.
    5. Edmunds Čižo & Olga Lavrinenko & Svetlana Ignatjeva, 2020. "Determinants of financial development of the EU countries in the period 1995-2017," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(2), pages 505-522, June.
    6. John Conroy, 2005. "APEC and financial exclusion: missed opportunities for collective action?," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 12(1), pages 53-79, June.
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    2. Stefanos Balaskas & Maria Koutroumani & Kiriakos Komis & Maria Rigou, 2024. "FinTech Services Adoption in Greece: The Roles of Trust, Government Support, and Technology Acceptance Factors," FinTech, MDPI, vol. 3(1), pages 1-19, January.

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