Cybersecurity is the most significant driver of
fintech development globally, accounting for 63% of its influence. This is
according to a recent study by UnaFinancial. The research discovered that the fintech space is
flourishing as countries strengthen their digital defenses. This highlights the
fact that security is both a technical requirement and the key to financial
innovation.

The Force Driving Fintech

The global fintech space is increasingly defined by
its reliance on cybersecurity, with a new study showing a strong correlation
between cybersecurity market size and fintech growth.

UnaFinancial’s research noted that the correlation
coefficients between cybersecurity and fintech expansion in Europe and America
were as high as 0.8714 and 0.9762, respectively. This suggests that investments
in digital security infrastructure directly support fintech adoption and
development.

However, in Asia, the growth of fintech is reportedly
linked to the size of the consumer electronics market, with a correlation
coefficient of 0.9403. Meanwhile, in Africa, the volume of consumer spending
plays a significant role, demonstrating the importance of local factors in
shaping fintech growth.

The study also highlighted how income levels influence
the factors driving fintech growth. In high-income countries, fintech growth
showed significant correlations with multiple factors: cybersecurity market
size (0.6923), consumer electronics market (0.5839), average hourly wages
(0.6237), and consumer spending volumes (0.6971).

Correlations were also present in middle-income economies, but they were weaker, and no notable correlations emerged in low-income countries.

In high-income countries, where digital infrastructure
is well-established, factors such as cybersecurity and consumer spending are
closely linked to fintech development. While middle-income countries show some similarities, they also exhibit a reliance on broader economic indicators like
nominal GDP and the presence of fintech hubs.

Cybersecurity and FinTech

Interestingly, the study also found that as a
country’s income level rises, the correlation between fintech growth and both
cybersecurity market size and average wages strengthens. This trend suggests
that in wealthier countries, there is an increasing focus on securing digital
transactions and ensuring economic incentives align with technological
advancements.

A deeper non-linear analysis confirmed that
cybersecurity is the most influential driver of FinTech growth globally,
accounting for 63% of the significance in the model. This is followed by
average wage rates, which contribute 13%. Other factors, while present, were
significantly less influential.

The study drew on data from 146 countries and examined various potential factors that could drive fintech development. These
include gender ratio, GDP per capita, internet penetration, and cybersecurity
market volumes, among others.

This article was written by Jared Kirui at www.financemagnates.com.

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