Abstract:

Financial integration is process that involves a closer interaction between global economies. The purpose of this research is to capture the degree of financial intermediation, and, implicitly digitalization, based on survey from about 140 economies, using a Vector Autoregressive model. The relevance of the study consists in the analysis of the indicator the Global Findex Index, that measures the use of financial services every 3 years, starting in 2011. The results reinforce the idea that use of digital financial services reduce poverty and the digitalization of financial services have a beneficial impact for the economic development and, at the same time, the welfare of the economy. Fintech helps minimize the risks regarding financial stability and, as policy implications, for governments, benefits include lessening corruption and money laundering.