The Political Economy of Fintech: Review of Literature and Proposal of Research Agenda

Abstract

This article aims to address the political economy of Fintech (Financial Technology). The key assumption guiding the paper is that the regulation, supervision, and ultimately the degree and shape of development of the Fintech sector are affected by and, at a fundamental level, even determined by political factors. While politics can influence Fintech via both demand and supply channels, this article primarily focuses on the supply side. The article reviews the emerging academic literature aiming to analyze the politics and political economy of Fintech, showing that there is still a significant gap. Drawing inspiration from the earlier literature on the political economy of traditional finance, but also taking into account certain specificities of Fintech, the article suggests how the research agenda for the political economy of Fintech should proceed, addressing the potential influence of economic interests, institutions, and ideas.