Drivers of fintech policy evolution: the role of policy learning and institutions

Despite the increasing importance of financial technology (fintech), there is a gap in research on the drivers of countries' fintech policy stances. This article contributes to theoretical discussions in the public policy literature by outlining how policy learning and institutions may affect the evolution of national fintech policy stances. To test our theoretical framework, we analyse a comparative case study of the three Baltic states, which have experienced diverging fintech policy trajectories on a national level. We find that policy learning has played a crucial role in fintech policy evolution in the Baltic states. Various fintech-related scandals have revealed policy failures, leading policy makers to adopt a more cautious stance. The evolution of fintech policy stances also interacts with the institutional architecture of financial supervision: an integrated model is more conducive to a proactive stance than a fragmented model. In this way, our article addresses the theoretical and empirical research gap regarding the drivers of fintech policy by outlining how policy learning and institutions can affect its evolution.