Analyzing the Impact of Fintech Development on Indonesia’s Economic Growth: The Mediating Role of the Financial Sector’s GDP

Fintech is identified as an innovation in the financial services industry that applies digital technology to provide faster, simpler, and more efficient financial services. From a macroeconomic perspective, the rapid growth of fintech and its contribution to the financial sector could encourage economic growth in Indonesia. This study aims to analyze the impact of fintech development on Indonesia’s economic growth through the financial sector’s GDP as a mediating variable. This study uses a quantitative method, utilizing quarterly data from 2018 to 2024, and conducts mediation analysis using the PROCESS Macro Model 4 in SPSS. The results show that the number of fintech firms has no direct significant effect on economic growth; however, it does have a significant indirect influence on growth through the financial sector. Meanwhile, total loan disbursement impacts Indonesia’s GDP directly and through the financial industry. In addition, financial services also contribute significantly to the national GDP. These results show that optimizing the economic impact of the financial sector depends on enhancing its capacity to respond to fintech innovation. The study suggests that policymakers, such as government officials and entrepreneurs, should prioritize improving financial sector integration to leverage the advantages of Fintech expansion for national economic growth.