Fin or tech? The role of financial and technological capabilities in global fintech development

Abstract Fintech has been an emergent crucial area for enhancing national competency and transforming the global financial landscape. Financial and technological capabilities are the two key factors influencing fintech development. This study seeks to clarify the impacts of the two factors and investigate their relationships. The data mainly originate from the Orbis patent database to depict the pattern of global fintech development. The empirical findings demonstrate that both financial and technological capabilities promote fintech development, and technological capabilities are more important. As national capabilities increase, the positive effects of financial capabilities weaken and turn negative when national capabilities are high, whereas technological capabilities continue showing increasingly positive effects. Furthermore, financial and technological capabilities have a reinforcing relationship with each other. But when national capabilities are high, financial capabilities prohibit the promoting effect of technological capabilities. This study provides empirical evidence and policy implications to assist countries in their fintech development.