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Fintech Evolution In The European Union: Trends, Drivers And Challenges

Author

Listed:
  • ORASTEAN Ramona

    (Lucian Blaga University of Sibiu)

  • MARGINEAN Silvia

    (Lucian Blaga University of Sibiu)

  • CRISTIAN Mihai

    (Lucian Blaga University of Sibiu)

Abstract

The financial sector industry is fast changing with the rapid emergence of Fintech in Europe. This paper explores the evolution and current state of the Fintech sector in the European Union, focusing on its key dimensions and the challenges it faces. Using comprehensive indexes such as the Aggregate Fintech Activity Index and data from Statista and Eurostat, the study provides a multi-dimensional analysis of Fintech activity in the European Union. It examines trends and key drivers shaping Fintech`s development based on four dimensions: the number of Fintech companies, market capitalization, number of users and average transaction value per user. Findings underline regional disparities, with northern European countries leading in Fintech adoption due to advanced digital infrastructure, widespread use of online banking and digital payments, financial literacy and regulatory support. The study highlights Fintech`s dual role in advancing financial inclusion and disrupting traditional banking systems, emphasizing the need for strategic regulatory and market approaches to ensure sustainable sector growth.

Suggested Citation

  • ORASTEAN Ramona & MARGINEAN Silvia & CRISTIAN Mihai, 2024. "Fintech Evolution In The European Union: Trends, Drivers And Challenges," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 76(2), pages 82-90, June.
    • Handle: RePEc:blg:reveco:v:76:y:2024:i:2:p:82-90
    DOI: 10.56043/reveco-2024-0018
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    References listed on IDEAS

    as
    1. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).
    2. Nourallah, Mustafa & Öhman, Peter & Hamati, Samer, 2024. "Financial technology and financial capability: Study of the European Union," Global Finance Journal, Elsevier, vol. 62(C).
    3. 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.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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