Success of Fintech in the Knowledge Era: An Empirical Study

Fintech companies are increasingly becoming more important in the economic context, due to their potential to significantly alter the financial system. Therefore, it is important to investigate the economic determinants that condition the financial performance of this type of company. To achieve this, a multivariate stochastic model estimated under the generalized method of moments (GMM), where the companies’ return on assets (ROA) as a function of a set of financial and macroeconomic variables was used. The database was obtained from EIKON, the World Bank, and the Heritage Foundation, for 296 fintech companies. The results reveal that the internal variables, leverage, R + D intensity, capital, and operational efficiency are significantly related to performance. While the variables of size and intensity of intangible assets are significant, their effects are different than expected. The variable of GDP per capita is also significant for fintech performance.