The Nexus Between Technology and Finnovation: A Sustainable Development Model

Fintech is a buzz word that is present everywhere with its integration of digitization, internet of things, blockchain technology, machine learning, Artificial intelligence tools. Financial industry transformed through innovative and advanced technological processes to offer a wide variety of financial products and services at an affordable cost for opportunity broadened decision making. An accelerated growth of Fintech industry, wide range of service providers, convenience of the users and changing attitude of the investors. A Global correlation analysis allows to explore the level of interaction among the assets or indices. A key contribution of this paper is the analysis of the growth of Fintech in terms of size, participants, users market growth, and the role of policy makers along the stakeholders. Another part is a conceptual model which indicates how fintech and financial inclusion contributes to the circular flow of economy and in turn to the sustainable development goals. Based on a quantile regression and wavelet coherence approach, results show a heterogenous nexus of Fintech industry with those of digital technologies and equity benchmarks, where timing plays an important role which nexus is better described as a fundamental linkage co-movement. Implications may arise for investors’ preferences to seeking more for company stocks that implicitly contribute to financial inclusion and therefore to sustainable development.