Crowdfunding Amidst FinTech Winter: Complement or Substitute?

Shadi Al Shebli, Ahmet Faruk Aysan () and Ruslan Nagayev
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Shadi Al Shebli: College of Islamic Studies, Hamad Bin Khalifa University, Qatar Foundation, Doha P.O. Box 34110, Qatar
Ahmet Faruk Aysan: College of Islamic Studies, Hamad Bin Khalifa University, Qatar Foundation, Doha P.O. Box 34110, Qatar
Ruslan Nagayev: College of Islamic Studies, Hamad Bin Khalifa University, Qatar Foundation, Doha P.O. Box 34110, Qatar

JRFM, 2025, vol. 18, issue 3, 1-20

Abstract: This study examines the transformative potential of FinTech, particularly crowdfunding, in the context of traditional financial systems amidst the FinTech market downturn (‘Winter’) of 2022. We address a fundamental question: Does crowdfunding represent a viable alternative to conventional finance, or does it merely function as an extension of existing financial infrastructure? To investigate this relationship empirically, we developed a proprietary crowdfunding index and employed Interconnectedness Index methodology to compare the spillover effects of crowdfunding and traditional financial systems with common economic factors such as interest rates, USD index, economic uncertainty, cryptocurrency (Bitcoin), as well as commodities (gold and oil). Despite crowdfunding’s remarkable growth trajectory over the past decade, our empirical evidence indicates that it has not yet emerged as a viable substitute for conventional financial mechanisms. These findings carry substantial implications for regulatory frameworks, industry stakeholders, and academic discourse, contributing to the broader understanding of FinTech’s disruptive capacity within the financial ecosystem.

Keywords: crowdfunding; finance; spillovers; interconnectedness; FinTech; volatility (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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