Fintech or TechFin: Discovery of an Extant State by Panel Data Estimation
Keywords:
Co-integration, FinTech, financial inclusion, mobile banking, telecom sector, telecommunication infrastructureAbstract
FinTech has been the most marked jargon recently in the finance industry, envisioned to be primarily dependent on the infrastructure of telecom sector. Thus, this study attempts to ascertain an association between financial inclusion and technological growth of telecom sector over last decade viz. year 2008 to 2017 and vice versa. In order to represent the growth of telecom technology, the number of mobile subscribers has been deployed and for measuring the growth in financial inclusion, the number of bank account holders has been taken from the official website of Ministry of Communications and CMIE, respectively. To analyse long run association, Johansen Fisher Co-integration has been applied and to test driver or catalyst in this system of FinTech and TechFin, we have applied VECM Model on each variable by using each variable as dependent variable once and as an independent the next time. The results expound that both the variables have long run association for the specified period and growth in technology causes the financial inclusion in long run and short run also, but financial inclusion causes technology in long run only.
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