Using machine learning to evaluate the influence of FinTech patents: The case of Taiwan's financial industry

Financial technology (FinTech) has flourished in recent years. From 2008 to 2016, the global investment in FinTech increased more than threefold. However, most of the extant literature has focused on FinTech innovation or the litigation of financial patents, while few studies have explored the effects of FinTech patents in the financial industry. Therefore, this paper employs machine learning algorithms for classification and association rule purposes in order to analyze the relationship between FinTech patents and performance from 2008 to 2016. Our results show that FinTech patents can indeed improve the profitability of the financial industry. We also find that the influence of return on asset is more significant than that of return on equity. (C) 2020 Elsevier B.V. All rights reserved.

Automated summary

This study used machine learning algorithms to analyze the impact of FinTech patents on financial industry performance from 2008 to 2016. The results showed that FinTech patents can improve the profitability of the financial industry, with the influence of return on assets being more significant than that of return on equity.