Does Financial Technology Drive Economic Growth? Evidence From Jordan

Abstract

This study aimed to explore and test the impact of financial technology (FinTech) on enhancing macroeconomic growth in the Hashemite Kingdom of Jordan, and to identify the mechanisms that stimulate economic activity, such as efficiency, financial inclusion, and cost reduction. It also sought to determine the intermediary role of the "Medfwatcom" platform as an integrated digital channel for translating FinTech innovations into tangible economic outcomes within the banking and financial sector. To achieve these objectives, the study employed a mixed descriptive-analytical approach (quantitative and qualitative). A questionnaire was administered to a quantitative sample of 403 respondents, including employees and experts in the general banking and financial environment. Additionally, structured qualitative interviews were conducted with a sample of 12 experts and high-level officials from the Central Bank, the Securities Commission, the Association of Banks, and startups. Structural and trajectory data were analyzed using AMOS software and multiple regression tests. The statistical results demonstrated a statistically significant overall positive impact of financial technology on economic growth, with a total effect size of 0.829 at a p-value of 0.000. The model successfully explained 65.9% of the variance in economic growth. The "Medfwatcom" platform played a crucial mediating role, explaining a statistically significant indirect effect of 0.341 (34.1%) in driving economic growth and boosting liquidity by reducing transaction time and effort and establishing an integrated financial connectivity system. Based on these findings, the study primarily recommends strengthening investment in comprehensive financial connectivity infrastructure and developing cybersecurity standards. This can be achieved by the central bank and policymakers formulating flexible regulatory frameworks that ensure the continued operational efficiency of digital payment platforms like "Medfwatcom," removing technical and bureaucratic obstacles to guarantee data protection, and expanding financial inclusion to support small and medium-sized enterprises (SMEs) as a strategic pillar for national economic growth.