Journal of Financial Economics Vol. 171 2025
Surviving the fintech disruption
Abstract
We examine the impact of fintech on firm labor demand, job turnover, and firm performance. Occupations with higher exposure to fintech experience a net decline in job postings and employment, though both complementary and substitutive effects emerge across different sectors. Fintech blurs traditional industry boundaries, creating demand for workers with a combination of finance and technology skills. In response, firms upskill through hiring, reallocate talent internally, and pivot innovation to new areas. As a result, firms are better equipped to absorb the shock than individual workers, with innovative firms even experiencing growth in employment, sales, and productivity upon fintech disruption.
- DOI
- 10.1016/j.jfineco.2025.104071
- Volume
- 171
- Pages
- 104071
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref