Key Factors Influencing Fintech Development in ASEAN-4 Countries: A Mediation Analysis

Financial technology (FinTech) rapidly transforms financial landscapes across ASEAN-4 countries by enhancing financial inclusion and digital service accessibility. However, the key factors driving FinTech development in these economies remain ambiguous. While existing studies highlight the economic and technological aspects of FinTech adoption, limited research distinguishes the unique conditions shaping FinTech's evolution in developing ASEAN markets. This study bridges this gap by identifying economic and non-economic determinants and exploring their mediating effects. This research aims to investigate the primary drivers of FinTech development in ASEAN-4, emphasizing the roles of financial access and technological readiness as mediators in fostering a sustainable FinTech ecosystem. Utilizing Structural Equation Modeling (SEM) with SmartPLS3, this study analyzes secondary data from 2008–2018, evaluating macroeconomic indicators, banking conditions, internet penetration, innovation levels, population dynamics, and human development factors. General banking conditions, access to finance, and technological readiness significantly impact FinTech development. Additionally, financial accessibility and technological infrastructure mediate the influence of economic stability, innovation, and digital penetration on FinTech growth. The study underscores policymakers' and stakeholders' need to enhance digital infrastructure and financial accessibility to accelerate FinTech growth. Strengthening financial ecosystems will drive digital transformation and economic resilience in emerging ASEAN economies.