Cultural Catalysts of FinTech: Baring Long-Term Orientation and Indulgent Cultures in OECD Countries

The proliferation of financial technology (FinTech) has been instrumental in advancing financial inclusion, particularly in regions where traditional banking services have been historically limited. This study controls for supply-side determinants of FinTech adoption across societies and investigates the influence of cultural dimensions – long-term orientation (emphasizing future rewards, perseverance, and thrift) and indulgence (prioritizing immediate personal satisfaction, leisure, and emotional expression) – on this phenomenon. Utilizing a comprehensive dataset spanning 9 years (2012–2020) from 43 OECD member countries (including partner nations), this research employs a two-stage fixed effect model with robust standard errors. The findings reveal that societies characterized by higher levels of indulgence demonstrate a lower propensity for FinTech adoption. Conversely, the long-term orientation cultural dimension exhibited a negative, albeit statistically insignificant, effect on FinTech appetite. This study underscores the necessity for industry practitioners and FinTech entrepreneurs to consider cultural dynamics when initiating FinTech ventures in specific markets. Furthermore, it recommends the exploration of additional cultural dimensions from various frameworks to enhance the generalizability of these findings. By elucidating the pivotal role of culture in shaping FinTech adoption, this research offers valuable insights for both academic discourse and industry applications, contributing to a more nuanced understanding of the interplay between cultural factors and financial innovation.