Evolution of FinTech in Central Asian Countries and Implications for the Region’s Economy

The contribution of innovation to global development and productivity is indeed very important, as it enables the creation of new products and services or the improvement of existing ones. Experience of developed economies suggests that innovations and Financial Technology (Fintech) evolution have become efficient tools in the process of combating global challenges, such as financial crisis and pandemics. This paper examines the contributions of Fintech in the economic development, proxied by GDP, for Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan (KKTTU). Indicators of Fintech, regarding these countries, are identified as number of internet subscribers, POS-terminals, number of mobile subscribers, number of people using the internet, and number of people using credit or debit cards. Previous literature provides evidence of the effect of Fintech on the economic fortune of advanced countries. In a similar vein, this paper extends the notion of economic development and Fintech to Central Asia, where it has received little or no attention, except for the case of Kazakhstan. The findings suggest that further research should be directed towards exploring other factors that promote economic and technological collaboration in all countries of the region. Greater success can be derived from synergy of working collaboratively than individually.