When fintech meets finance: Growth effects across ASEAN, Asia, and OECD economies

Publication Type

Journal Article

Publication Date

9-2025

Abstract

This study examines how fintech credit interacts with bank lending to influence GDP per capita growth across the ASEAN, Asia, and OECD countries. Fintech credit has no statistically significant effect on the baseline model. However, after incorporating group-specific interactions, this study revealed a strong group heterogeneity. In ASEAN, fintech credit alone has a negative impact on growth, but becomes growth-enhancing when supported by strong traditional banking systems, suggesting that fintech complements bank lending and may enhance credit allocation efficiency. In contrast, in Asian and OECD countries, the growth effect of bank lending is negative or weaker, possibly due to credit saturation. Although fintech is effective on its own, its interaction with bank credit is negative. Unlike ASEAN countries, simultaneous expansions of fintech and bank credit may not be synergistic, possibly due to substitution effects or crowding-out effects in Asian and OECD countries.

Keywords

fintech, banking sector, economic growth, panel data

Discipline

Asian Studies | Econometrics | Finance

Research Areas

Econometrics

Publication

Singapore Economic Review

ISSN

0217-5908

Identifier

10.1142/S0217590825500456

Publisher

World Scientific Publishing

Additional URL

https://doi.org/10.1142/S0217590825500456

This document is currently not available here.

Share

COinS