Correlation Links Of Innovations In Financial Services And Business Environment Development

Abstract :

The development of the financial sector is inextricably linked to the functioning of other sectors of the national economy and is interdependent with the parameters of the business environment. Stormy and dynamic changes create new challenges for running economic activity. Doing business must include processes? aimed at improving the competitiveness of enterprises and ensuring economic growth. The purpose of the paper is to analyze the correlation between the spread of FinTech innovations and the parameters of business environment development, using Spearman’s rank correlation methodology. To quantify the spread of technological innovation in the financial sector, it is proposed to use the Technological Financial Services Index (TFSI) – an integral indicator proposed by the authors. Twelve international indexes, such as Social Progress Index, Gini Index, Index of Economic Freedom, Global Competitiveness Index, Human Development Index and others, are used to evaluate the parameters of the business environment. The correlation analysis of the business environment parameters and the technological financial services index provided the following conclusions: 1) the highest level of correlation is between the technologization of financial services and the ICT development and digital readiness; 2) technological development is the main determinant of FinTech innovations, while the level of economic development does not have a decisive influence on the spread of FinTech innovations; 3) the parameters of the political and social environment strongly correlate with the technologization of financial services; 4) the lack of linkage to innovation in financial services is only specific to the environmental dimension of business environment.