Fintech adoption and economic growth: exploring the global landscape

Financial technology (fintech) has emerged as a transformative force reshaping the global economy by integrating finance and technology. This study investigates the causal impact of consumer-facing fintech advancements on economic growth using panel data from 112 countries between 2011 and 2021. Employing instrumental variable analysis, the study identifies a significant relationship between fintech adoption and economic development. The findings reveal that higher levels of fintech adoption lead to increased gross domestic product per capita, as demonstrated by a highly positive and statistically significant coefficient (β = 1.092; p < 0:01). Consumer-facing innovations, such as mobile payments, digital wallets and e-commerce platforms, have been particularly effective in reducing transaction costs, enhancing accessibility and promoting financial inclusion. These tools empower consumers and businesses, facilitating broader economic activity and fostering sustainable development. The study also highlights the importance of enabling regulatory frameworks and investments in digital infrastructure to maximize the benefits of fintech. By doing so, policy makers can harness fintech’s potential to drive inclusive economic growth and bridge financial access gaps, particularly in underserved regions.