Surviving the Fintech Disruption

94 Pages Posted: 7 Jul 2021 Last revised: 28 Dec 2023

See all articles by Wei Jiang

Wei Jiang

Emory University Goizueta Business School; ECGI; NBER

Yuehua Tang

University of Florida - Department of Finance

Rachel Xiao

Fordham University - Finance Area

Vincent Yao

Georgia State University - J. Mack Robinson College of Business

Multiple version iconThere are 2 versions of this paper

Date Written: December 26, 2023

Abstract

This study explores the impact of fintech using a novel occupation-level fintech exposure measure. Occupations with high fintech exposure experience a net decline in job postings, employment, and wages, but complementary and substitutive effects are both present in the cross section. Fintech blurs the sector boundaries, and workers with finance-and-technology combination skills are sought after no matter where they are currently employed. Firms respond to the shock by adjusting hiring strategies, reallocating talent internally, and pivoting innovations to new areas, with a resulting impact not nearly as negative as on workers. Innovative firms even gain in employment, sales, and productivity.

Keywords: Fintech, Creative Destruction, Jobs, Tasks, Technology, Innovation

JEL Classification: J23, O33, G30

Suggested Citation

Jiang, Wei and Tang, Yuehua and Xiao, Rachel J. and Yao, Vincent, Surviving the Fintech Disruption (December 26, 2023). Available at SSRN: https://ssrn.com/abstract=3834776 or http://dx.doi.org/10.2139/ssrn.3834776

Wei Jiang

Emory University Goizueta Business School ( email )

1300 Clifton Rd
Atlanta, GA 30322
United States

ECGI ( email )

c/o the Royal Academies of Belgium
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Belgium

NBER ( email )

1050 Massachusetts Avenue
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Yuehua Tang

University of Florida - Department of Finance ( email )

P.O. Box 117168
Gainesville, FL 32611
United States

HOME PAGE: http://sites.google.com/site/yuehuatang

Rachel J. Xiao (Contact Author)

Fordham University - Finance Area ( email )

33 West 60th Street
New York, NY 10023
United States

Vincent Yao

Georgia State University - J. Mack Robinson College of Business ( email )

P.O. Box 4050
Atlanta, GA 30303-3083
United States

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