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Financial Technology (FinTech) as a Financial Development Factor in the EU Countries

Author

Listed:
  • Olga Lavrinenko

    (Institute of Humanities and Social Sciences, Daugavpils University, Parades Street 1-421, LV-5401 Daugavpils, Latvia)

  • Edmunds Čižo

    (Department of Economics, Daugavpils University, Parades Street 1-232, LV-5401 Daugavpils, Latvia)

  • Svetlana Ignatjeva

    (Department of Computer Science, Daugavpils University, Parades Street 1-413, LV-5401 Daugavpils, Latvia)

  • Alina Danileviča

    (Institute of Humanities and Social Sciences, Daugavpils University, Parades Street 1-421, LV-5401 Daugavpils, Latvia)

  • Krzysztof Krukowski

    (Faculty of Economics, University of Warmia and Mazury in Olsztyn, Oczapowskiego 4, 10-972 Olsztyn, Poland)

Abstract

The aim of the research is to determine the impact of financial technology (FinTech) on financial development in EU countries. The multi-dimensional nature of the concepts described above and the low availability of data for regions smaller than countries makes it difficult to investigate the link between financial development and FinTech, as well as affects the values of the results due to a certain averaging of indices across countries. The study examines the Global FinTech Index and the Financial Development Index, which characterize financial development in the EU countries, as well as the sub-indices of the Financial Development Index. The article applies frequency analysis and correlation analysis methods. A positive linear relationship between the Global Fintech Index and the Financial Markets Index sub-index, as well as its components Financial Markets Depth Index and Financial Markets Efficiency Index, has been identified. There is also a positive linear relationship between the Global FinTech Index and the Financial Institutions Depth Index, while a negative linear relationship has been identified between the Global FinTech Index and the Financial Institutions Access Index.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:2:p:45-:d:1054252
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Alexander, Dale & Prescod, Kwesi, 2025. "Global overview of experiences in fintech development and administration: interim report on trends in fintech sector development in OECD countries and SIDS," Documentos de Proyectos 82154, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Sun, Cong & Zeng, Fangyu, 2025. "Can the improvement of judicial quality optimize the business environment in the region? A study based on the moderating effect of financial technology development," Finance Research Letters, Elsevier, vol. 84(C).
    3. Laima Okunevičiūtė Neverauskienė & Irena Danilevičienė & Gileta Labašauskienė, 2025. "An Assessment of Lithuania’s Financial Technology Development," FinTech, MDPI, vol. 4(2), pages 1-20, May.
    4. Tugba Nur & Emre E. Topaloglu & Daniel Balsalobre-Lorente & Serkan Sahin & Ladislav Pilar & Ilhan Ege, 2026. "The impact of financial innovation, economic complexity, and green technologies on natural resource management in eu countries," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-42, December.
    5. Cheng, Xiaoqiang & Guo, Wenjuan & Teng, Yue & Yao, Dingjun & Zhou, Hua, 2025. "Impact of fintech on carbon emissions in China: Evidence from the perspectives of green finance and financial efficiency," Finance Research Letters, Elsevier, vol. 86(PB).
    6. Yelena Popova & Olegs Cernisevs & Sergejs Popovs, 2024. "Impact of Geographic Location on Risks of Fintech as a Representative of Financial Institutions," Geographies, MDPI, vol. 4(4), pages 1-16, November.
    7. Yang, Xue & Zhang, Peng & Zhao, Zuoxiang & Koondhar, Mansoor Ahmed, 2024. "How disaggregated natural resources rents affect financial development: From the perspective of sustainable development," Resources Policy, Elsevier, vol. 92(C).
    8. 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.
    9. Shah, Waheed Ullah & Younis, Ijaz & Missaoui, Ibtissem & Liu, Xiyu, 2025. "Environmental transitions effect of renewable energy and fintech markets on Europe's real estate stock market," Renewable Energy, Elsevier, vol. 243(C).
    10. Stefanos Balaskas & Maria Koutroumani & Kiriakos Komis & Maria Rigou, 2024. "FinTech Services Adoption in Greece: The Roles of Trust, Government Support, and Technology Acceptance Factors," FinTech, MDPI, vol. 3(1), pages 1-19, January.
    11. Ari Warokka & Aris Setiawan & Aina Zatil Aqmar, 2025. "Key Factors Influencing Fintech Development in ASEAN-4 Countries: A Mediation Analysis," FinTech, MDPI, vol. 4(2), pages 1-19, April.
    12. Chadi Azmeh & Marwan Al-Raeei, 2024. "Exploring the dual relationship between fintech and financial inclusion in developing countries and their impact on economic growth: Supplement or substitute?," PLOS ONE, Public Library of Science, vol. 19(12), pages 1-22, December.

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