A multi-dimensional FinTech composite integrating infrastructure, access, usage, knowledge transfer, and governance-by-technology: The role of digital silk road policy in BRI economies

This research pioneers the assessment of the progress, demand, and future potential of financial technology (FinTech) in 148 Belt and Road Initiative (BRI) countries from 2004 to 2023. For this purpose, FinTech index is constructed using Principal Component Analysis (PCA) from 19 indicators, based on five dimensions: (1) digital and technological infrastructure, (2) access to tech-enabled financial services, (3) usage of tech-enabled financial services, (4) knowledge transfer, and (5) digital governance and enabling environment. The methodological credibility and robustness of the FinTech composite were ensured by using a two-step system GMM, parallel trend analysis, difference-in-differences (DiD), and propensity score matching-difference-in-differences (PSM-DiD). In empirical analysis, “Digital Silk Road” is incorporated as a policy variable, whereas research and development, regulatory governance, tax revenue of GDP, inflation, and government spending serve as covariates. An increasing trend was observed from 2015 to 2023, implying that accelerating FinTech adoption was observed after the “Digital Silk Road” initiative of 2015, driven by demand-side pull (smartphone/e-commerce diffusion) and supply-side push (digital infrastructure and pro-FinTech regulation). Further, sub-group income- and region-wise heatmaps in Origin 2025 visually uncovered income and regional disparities in FinTech development. East Asian and European countries emerged as regional FinTech leaders, while African, particularly sub-Saharan economies, reflected weak regulatory frameworks, limited digital financial literacy, and infrastructure deficiencies. This research also serves as an analytical tool for country-wise decomposition, identifying strengths and weaknesses in FinTech adoption and highlighting areas for policy intervention. From 2015 to 2023, Korea ranked highest in BRI-FTI, followed by China and Seychelles, implying the best FinTech ecosystem, whereas Somalia, Ethiopia, and Eritrea have weak FinTech ecosystems. The research introduces new perspectives and serves as a valuable guide for governments, legislators, industries, and financial institutions for tailored policy strategies based on a country's specific development context by integrating a demand–supply lens that attributes outcomes to both consumer uptake and infrastructure/regulatory supply. The findings highlight the urgency of cross-border knowledge exchange, regulatory harmonization, and digital upskilling to bridge the divide between BRI countries. Across Belt and Road corridors, the BRI—especially the Digital Silk Road—expanded the supply of digital rails and enabled regulation while deeper trade, tourism, and platform spillovers amplified demand for cross-border payments, credit, and e-commerce.