Surviving the Fintech Disruption
94 Pages Posted: 7 Jul 2021 Last revised: 28 Dec 2023
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Surviving the Fintech Disruption
Surviving the Fintech Disruption
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: Suggested Citation