How does FinTech development impact technological progress? A theoretical framework and empirical evidence

作者：Yanfang Wang, Bin Zhang, Haifeng Hu · 发表于：Financial Innovation · 年份：2026 · DOI：10.1186/s40854-025-00842-4

The critical role of finance in technological progress is well established, yet the theoretical explanation of how FinTech development—as a new part of the financial industry—affects technological progress remains underdeveloped. This research aims to bridge this gap by developing a novel theoretical framework that explains the impact of FinTech firms’ development, particularly their interactions with traditional financial intermediaries, on technological progress. We develop an endogenous growth model in which technological progress is endogenous and the financial sector is subdivided into FinTech firms and traditional financial intermediaries. The model has two novel features: (i) an extended physical capital accumulation equation that captures the differential saving-to-investment conversion efficiencies of both financial subsectors and (ii) an interaction framework adapted from Krugman (J Pol Econ 87:253-266,1979. https://doi.org/10.1086/260755) and Grossman and Helpman (Econ J 101:1214–1229, 1991. https://doi.org/10.2307/2234437) to model the dynamic interplay between two financial subsectors. In this framework, we derive three empirically testable propositions. We then use data from China to examine the propositions via panel data models, mediating and moderating effect models, and differential GMMs. (i) FinTech firms can promote the development of traditional financial intermediaries, thereby indirectly fostering technological progress; however, (ii) the efficiency gap...