Surviving the fintech disruption

Wei Jiang, Yuehua Tang, Rachel J. Xiao and Vincent Yao

Journal of Financial Economics, 2025, vol. 171, issue C

Abstract: We examine the impact of fintech on firm labor demand, job turnover, and firm performance. Occupations with higher exposure to fintech experience a net decline in job postings and employment, though both complementary and substitutive effects emerge across different sectors. Fintech blurs traditional industry boundaries, creating demand for workers with a combination of finance and technology skills. In response, firms upskill through hiring, reallocate talent internally, and pivot innovation to new areas. As a result, firms are better equipped to absorb the shock than individual workers, with innovative firms even experiencing growth in employment, sales, and productivity upon fintech disruption.

Keywords: Fintech; Creative destruction; Jobs; Tasks; Technology; Innovation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:171:y:2025:i:c:s0304405x25000790

DOI: 10.1016/j.jfineco.2025.104071

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