Unlocking Tech In Fintech: Fintech Paradox

Abstract

Fintech has emerged as a transformative force in financial services, facilitating online transactions, increasing financial literacy, and promoting financial inclusion. This study investigates the interplay between technology investment, customer acquisition costs, customer retention rates, and average transaction values, and their impact on revenue growth within the fintech sector.  With 400 fintech firms  the research employs, correlation analysis, regression modeling, and ANOVA to explore these relationships. Major findings indicate that higher technology investment significantly correlates with increased revenue growth and enhances the effect of higher average transaction values on revenue. Customer retention rates also exhibit a strong positive association with revenue growth, while the impact of customer acquisition costs on revenue growth was less consistent. The study highlights the crucial role of technology and retention strategies in driving financial performance and suggests that fintech firms can achieve better outcomes by focusing on technological advancements and effective customer loyalty programs. These insights provide valuable implications for optimizing business strategies and improving competitive positioning in the fintech industry.