Stable grounds, digital gains: The role of macroeconomic resilience in fintech market development

Abstract

This study investigates the impact of macroeconomic stability on the growth of fintech markets across 92 countries, emphasizing the importance of stable economic conditions in fostering fintech development. Using newly released cross-country data from the Bank for International Settlements and a comprehensive measure of macroeconomic stability, the findings reveal a robust, positive association between macroeconomic stability and FinTech credit. This indicates that stability reduces economic risk and attracts investment, creating an enabling environment for fintech growth. Interaction analyses demonstrate that this relationship is amplified in societies with advanced digital infrastructure and high levels of financial literacy, underscoring the complementary roles of technological and educational ecosystems. To enhance reliability, the study addresses endogeneity concerns and conducts comprehensive robustness checks, including sensitivity analyses and the inclusion of additional controls. Furthermore, the results highlight the mitigating effects of financial inclusion policies, regulatory adaptability to digital business models, and the scale of digital services trade in shaping the relationship between macroeconomic stability and fintech market expansion.

keywords: BigTech, FinTech credit, Global, Institutions, Macroeconomic stability