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 the 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.