 Financial connectedness in the digital age: The impact of regional FinTech developmentWeijia Wang and He Ni Economic Modelling, 2025, vol. 152, issue C Abstract: This study investigates how FinTech development affects financial institutions’ network connectedness and systemic risk in China’s rapidly digitalizing financial sector. While existing research examines FinTech’s impact on financial stability, these approaches inadequately address how FinTech reshapes broader financial network structures. Using data from Chinese listed financial institutions from 2011 to 2021, we measure connectedness through stock-return interconnections and employ panel regression analysis to examine the relationship with regional FinTech development. Our analysis reveals that FinTech development significantly enhances financial institutions’ network connectedness, with this impact moderated by industry concentration and internal FinTech innovation. The effects are stronger in digitization and usage depth dimensions and more pronounced in non-state-owned institutions. These findings demonstrate that FinTech creates new systemic risk transmission channels through digital platform effects and technological interdependence. The results provide crucial insights for regulatory frameworks addressing systemic risk in financial digitalization. Keywords: FinTech; Connectedness; Financial network; Competition (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:152:y:2025:i:c:s0264999325002858 DOI: 10.1016/j.econmod.2025.107290 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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