Constructing a FinTech Adoption Index for BRICS+ Economies: Evidence from Principal Component Analysis
DOI:
https://doi.org/10.54536/ajase.v5i2.8782Keywords:
Automated Teller Machines, Brics+ Nation, Fintech, Internet Usage, Mobile Cellular Subscription, Principal Component AnalysisAbstract
Using Principal Component Analysis (PCA), this study creates a composite FinTech Adoption Index for eleven BRICS+ economies between 2006 and 2024. The index captures key dimensions of financial and digital infrastructure through four indicators: Automated Teller Machines (ATMs) per 100,000 adults, mobile cellular subscriptions per 100 people, fixed broadband subscriptions per 100 people, and individuals using the internet as a percentage of the population. The World Development Indicators (WDI) database is the source of data for every indicator. The BRICS+ economies differ significantly from one another in terms of the development of digital and financial infrastructure, as shown by descriptive statistics. The correlation analysis indicates moderate-to-strong positive relationships among all four indicators, supporting their suitability for PCA. The findings demonstrate a distinct upward trend in FinTech adoption throughout the BRICS+ economies between 2006 and 2024, emphasising the growing contribution of financial infrastructure and digital connectivity to the advancement of financial technology.
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Copyright (c) 2026 Aarav Jain, Chaitra Anthaiahgari, Samarth Agarwal
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