New research unveils cybersecurity as the most significant driver of fintech development globally

A new study conducted by UnaFinancial unveiled recently that cybersecurity might be the most crucial factor behind fintech development. The research shows that the correlation between fintech growth and cybersecurity tends to grow stronger as income levels increase.

According to UnaFinancial’s study, cybersecurity is responsible for 63% of fintech development globally. In other words, the global fintech space is increasingly defined by its reliance on cybersecurity. The study even suggests that there is a strong correlation between fintech growth and cybersecurity market size.

Which Factors Influence Fintech Expansion Around The World?

The correlation coefficients between fintech expansion and cybersecurity vary from area to area, but it still exists as a major factor. For Europe, the coefficient was as high as 0.8714, while the research suggests that it reached 0.9762 for America. The findings suggest that investment in digital security infrastructure would likely lead to greater adoption and development of the fintech sector.

The situation may be slightly different for Asia, however, as the fintech growth in Asian nations is supposedly linked to the size of the consumer electronics market. The study found that the correlation coefficient in this case is 0.9403.

As for Africa, the most significant role went to the volume of consumer spending, which shows the importance of local factors in shaping fintech growth. Moving on, the study also tackled the importance of income levels and how they influence the factors driving fintech growth.

For example, in high-income nations, there has been a greater correlation between fintech growth and a variety of other factors. Some include consumer spending volumes (0.6971), cybersecurity market size (0.6923), average hourly wages (0.6237), and consumer electronics market (0.5839).

The report also recorded the presence of correlations in middle-income economies, albeit significantly weaker ones. As for low-income countries, no notable correlations emerged during the research. But, in high-income nations, where there is a well-established digital infrastructure, factors like cybersecurity and consumer spending are very closely connected to the development of the fintech sector.

The study also says that the rise in a country’s income levels results in an increased correlation between fintech growth and both, average wages and cybersecurity market size. This suggests that wealthier countries have a greater focus on securing digital transactions and making sure that their economic incentives are in line with technological advancements.

Meanwhile, a non-linear in-dept ahalysis revealed that cybersecurity is the biggest driver of fintech growth globally. As mentioned, the figure is at 63%, followed by average wage rates, which contribute only 13% in comparison. Right now, other factors are significantly less influential.