Should the fourth industrial revolution be widespread or confined geographically? A country-level analysis of fintech economies

One of the major beneficiaries of the fourth industrial revolution is fintech. However, despite the unprecedented growth of, investment in, and returns generated by this sector, a conducive environment and fintech support ecosystem is essential to exploit the true potential of fintech. The biggest challenge for many governments across the globe is not only setting priorities in which fintech services to invest (e.g., digital wallets, peer-to-peer lending, e-insurances) but also in which geographical area to invest. Since technology is independent of physical interaction and geographical confinement, governments face a dilemma: keep fintech growth geographically diverse or concentrated within a few cities. This study evaluates the fintech success of countries with its spread in different cities and attempts to formulate a policy direction to accelerate the wave of the fourth industrial revolution. Our results suggest that rather than a widespread presence, countries should concentrate their efforts, investment, and attention to developing a fintech ecosystem in fewer cities to facilitate them as much as possible. This concentrated effort could help countries improve their Global Fintech Scores and specialize in specific core areas.