Fintech Adoption and Firm Performance: Mechanisms, Contingencies, and the Limits of Current Evidence (OpenAlex (recherche mondiale))

Summary

• SWIFT diffusion among nearly 7,000 banks demonstrated that profitability benefits materialized only after several years of adoption.p.2
• A panel study of 1,617 SMEs across 22 OECD countries found fintech adoption positively associated with operational efficiency.p.2
• An empirical analysis of 1,001 Kenyan businesses revealed that mobile money users were more innovative but did not outperform non-users after matching.p.2
• A survey of 100 MSME owners in Indonesia showed a statistically significant positive correlation between fintech adoption and firm performance, moderated by financial literacy.p.3
• A study across 45,770 firms in 20 emerging economies between 2012 and 2020 associated fintech funding with higher capital investment and lower borrowing costs.p.6
• A survey of 501 SME managers in Ghana found payment platform adoption was associated with multiple positive self-reported performance dimensions.p.5

Key insights

1. Fintech adoption functions as a contingent organizational resource rather than a uniform productivity shock across firms.p.2
2. Initial transition costs, system integration, and operational disruptions can cause temporary negative impacts on ROA before long-term returns materialize.p.3
3. ESG performance serves as a partial mediator in the positive relationship between digital financial service adoption and financial performance.p.3
4. Fintech financing substitutes for traditional bank lending in markets characterized by higher banking penetration.p.6
5. Fintech development enhances investment efficiency by curbing underinvestment in capital-constrained firms and reducing overinvestment where agency conflicts exist.p.6
6. Different fintech technologies yield contrasting performance outcomes, as seen in Oman where mobile banking yielded positive results while digital payments correlated negatively.p.5