ANALYSIS OF THE IMPACT OF FINTECH DEVELOPMENT ON FOREIGN DIRECT INVESTMENTS
Abstract
The article looks over the degree of implementation of FinTech services in the world. It’s determined that the leading countries in the implementation of FinTech are China, India, and South Africa. Crucial influencing factor is demographic, rather than the widespread demand among the population for modern technology. The penetration rate of these services in the United States, where the largest technology companies in the world are located, was only 46%. The share of service users among the population that actively use digital technologies reaches 33%. Noted that the objects of investment of American banks are startups, programming applications of open interfaces and platforms for third-party developers. European banks also aim to invest actively in the development of FinTech but are still more focus on their own development. It is determined that Asian, Australian and African banks tend to develop technological solutions on their own. According to experts, the number of partnership agreements in the world with FinTech companies will increase each year. The analysis of the regional structure of global investments in FinTech carried out. It showed a positive dynamics of investment during 2014–2019. Increasing the size of global investments is due to the interest of investors in new projects and business models. Venture capital investment priorities coincide with global ones and are related to reviewing, updating, and improving business processes. The amount of venture capital invested in FinTech projects stimulates the development of the financial industry, mainly in China, the United States, the United Kingdom, and Ireland. They account for almost 9 times more investment in FinTech than in other countries. Correlation-regression analysis was applied to investigate the relationship between the level of development of the FinTech market and foreign direct investments. According to the results of calculations, the largest impact on foreign direct investment has the volume of venture investment in FinTech-projects and the FinTech market development rating. This proves the positive impact of FinTech companies on the growth of foreign investments in the country.
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