Constructing a FinTech Adoption Index for BRICS+ Economies: Evidence from Principal Component Analysis (American Journal of Applied Statistics and Economics)

Summary

• FinTech usage has grown by over 240% globally in the past decade.p.2
• The aggregate Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy reached 0.732.p.10

Key insights

1. The composite index model assigns the highest loading weight of 0.549 to internet usage (INT), followed by 0.502 for mobile subscriptions (MCS).p.8
2. The aggregate FinTech Adoption Index for BRICS+ economies was negative from 2006 to 2013 before turning positive in the late 2010s.p.9
3. China, India, and Russia were identified as the largest positive contributors to the aggregate composite index in the later sample years.p.9