Determinants of Fintech Credit: Comparative Study

Financial sector nowadays is subject to a deep transformation according to digitalization and transition to online communication trends. The development of financial technologies encourages changes in traditional banking models as well as needs to adjust policies in favor of those facilitating technological progress. This study is dedicated to investigation of determinants of fintech credit on a cross-country level. The initial dataset is formed of figures on 100 countries over 2013-2018 years. The model is estimated with Arellano-Bond dynamic panel specification with variables measuring the level of industry regulation, access to technology, access to finance, conditions of traditional banking sector and some demographic criteria. The results suggest the volume of fintech lending flow is positively associated with sustainable banking sector; fintech lending is more extensive in countries with broader access to technologies (mobile subscriptions, Internet connection); the flow volume of fintech credit is positively associated with the increase of percentage of the working age population; more stringent regulation system is a barrier for the increase of fintech credit volumes.