The rapid expansion of financial technology (FinTech) has significantly transformed the structure and functioning of modern financial markets. While digital financial innovations enhance efficiency, accessibility, and financial inclusion, they also increase market complexity and interconnectedness, which may influence volatility dynamics and financial market stability. Drawing on perspectives from statistical physics and financial market analysis, this study examines the relationships among FinTech market complexity, market interconnectedness, perceived market volatility, and financial market stability. A quantitative research design was employed, and primary data were collected from 256 financial professionals working in banking institutions and FinTech related organizations in Bangladesh through a structured questionnaire. The collected data were analyzed using descriptive statistics, correlation analysis, multiple regression, and mediation analysis using SPSS. The findings reveal that FinTech market complexity and market interconnectedness significantly increase perceived market volatility, while perceived market volatility negatively influences financial market stability. The mediation analysis further confirms that perceived market volatility plays a significant mediating role between digital market dynamics and financial market stability. The study provides important insights into the evolving dynamics of FinTech driven financial systems and their implications for maintaining financial market stability.
Arner, D. W., Barberis, J., & Buckley, R. P. (2022). FinTech, RegTech, and the reconceptualization of financial regulation. Northwestern Journal of International Law and Business, 42(3), 371–413.
Battiston, S., Caldarelli, G., D’Errico, M., & Gurciullo, S. (2022). Leveraging the network structure of financial markets to assess systemic risk. Journal of Financial Stability, 58, 100975.
Akther, T., & Xu, F. (2020). Existence of the audit expectation gap and its impact on stakeholders’ confidence: The moderating role of the financial reporting council. International Journal of Financial Studies, 8(1), 4.
Buchanan, M. (2023). Complexity, instability, and financial markets: Lessons from complex systems theory. Nature Physics, 19(4), 463–469.
Juman, M. K. I., FarhanaYeasmin, K., Mazumder, N. H., Jalal, M. S., & Bhuiyan, M. M. (2026). Corporate Law Challenges of FinTech Adoption in Developing Countries Implications for Corporate Governance and Regulatory Compliance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 16(1), 263–287.
Farmer, J. D., Gallegati, M., Hommes, C., Kirman, A., Ormerod, P., & Cincotti, S. (2022). A complex systems approach to constructing better models for managing financial markets and the economy. European Physical Journal Special Topics, 231(17), 3217–3235.
Laeven, L., Valencia, F., & De la Torre, A. (2021). Financial innovation and regulation in emerging markets. Journal of Financial Stability, 54, 100872.
Erel, I., Stern, L., Tan, C., & Weisbach, M. S. (2022). Selecting investment advisors. Journal of Finance, 77(2), 1073–1111.
Juman, M. K. I., Jalil, A., Yeasmin, K. F., Tamanna, N., Roy, T. C., & Jahan, I. (2025). AI-driven EdTech innovations for workforce reskilling: Bridging education and business needs. International Journal of Academic Research in Business and Social Sciences, 15(11), 808–829.
Sornette, D. (2021). Physics-informed finance and economics: Complexity, risk, and critical transitions. Reports on Progress in Physics, 84(6), 066501.
Buchanan, M. (2024). Markets as complex systems: Rethinking financial stability in the digital age. Nature Physics, 20(2), 170–176.
Gai, P., & Illing, G. (2024). Systemic risk, financial networks, and digital intermediation. Journal of Financial Stability, 69, 101125.
Fuster, A., Plosser, M., Schnabl, P., & Vickery, J. (2022). The role of technology in mortgage lending. Review of Financial Studies, 35(11), 5225–5267.
Li, Y., Spigt, R., & Swinkels, L. (2023). The impact of FinTech adoption on financial market volatility. Finance Research Letters, 52, 103486.
Rau, P. R. (2023). Law, trust, and the development of FinTech. Research Policy, 52(1), 104635.
Rossi, A. G., & Utkus, S. (2022). The rise of digital financial advice. Journal of Economic Perspectives, 36(1), 151–170.
Bhattacharjee, A., Ghosh, A., Islam Juman, M. K.I., & Hossen, M. (2024). Augmented intelligence for knowledge management and green education in the post-COVID-19 era. In A. Bhattacharjee (Ed.), Integrating generative AI in education to achieve sustainable development goals (pp. 47–71). IGI Global.
Bromberg, L., Godwin, A., & Ramsay, I. (2023). FinTech regulation and the role of regulatory sandboxes in financial innovation. Law and Financial Markets Review, 17(1), 34–45.
Juman, M. K. I., Chowdhury, M. T. I., Karim, A. M., Synthia, T. I. C., & Ruma, I. J. (2025). The nexus of ESG practices and sustainable firm success: Evidence from Bangladesh’s banking sector. International Journal of Academic Research in Business and Social Sciences, 15(9), 1601–1618.
Rahman, M. M., Hossain, M. S., & Uddin, M. A. (2025). Digital financial intermediation and volatility dynamics in emerging financial markets. International Review of Financial Analysis, 87, 102712.
Sornette, D. (2021). Physics-informed finance and economics: Complexity, risk, and critical transitions. Reports on Progress in Physics, 84(6), 066501.
Broeders, D., & Prenio, J. (2022). Innovative technology in financial supervision (SupTech): The experience of central banks and supervisory authorities. Journal of Financial Regulation and Compliance, 30(2), 221–235.
Chen, M. A., Wu, Q., & Yang, B. (2022). How valuable is FinTech innovation? Review of Financial Studies, 35(9), 4381–4424.
Yeasmin, K. F., Juman, M. K. I., Chowdhury, M. T. I., Synthia, T. I. C., Hossain, M., & Jalil, A. (2025). Towards sustainable AI: Green accounting-based model for measuring the environmental cost of intelligent systems. International Journal of Academic Research in Accounting, Finance & Management Sciences, 15(4), 156–181.
Acemoglu, D., Daron, A., Ozdaglar, A., & Yildiz, E. (2023). Network formation and systemic risk in financial systems. Journal of Economic Theory, 207, 105566.
D’Acunto, F., Rossi, A. G., & Weber, M. (2023). Crowdsourcing financial information and market efficiency. Management Science, 69(4), 2025–2048.
Goldstein, I., Jiang, W., & Karolyi, G. A. (2023). To FinTech and beyond. Review of Financial Studies, 36(7), 2539–2563.
Polas, M. R. H., Juman, M. K. I., Karim, A. M., Tabash, M. I., & Hossain, M. I. (2020). Do service quality dimensions increase the customer brand relationship among Gen Z? International Journal of Advanced Science and Technology, 29(4), 1050–1070.
Allen, F., Gu, X., & Kowalewski, O. (2024). FinTech, financial inclusion, and systemic risk in emerging markets. Journal of Banking and Finance, 156, 106721.
Tang, H., & Zhang, Y. (2023). Do FinTech lenders penetrate areas that are underserved by traditional banks? Review of Finance, 27(1), 1–41.
Vives, X., & Ye, C. (2023). Digital finance and the stability of financial systems. Journal of Financial Stability, 66, 101115.
Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. (2023). Regulating digital finance platforms: Challenges and opportunities. Journal of Financial Regulation, 9(1), 1–34.
Hossain, A., Khan, M. Y. H., Hossain, M. M., Rony, M. B., Juman, M. K.I, Sultana, F., & Rahaman, A. (2024). E-shopping decisions during the COVID-19 pandemic in Bangladesh. Environment and Social Psychology, 9(9), 2966.
Gai, P., & Kapadia, S. (2022). Networks and systemic risk in the financial system. Oxford Review of Economic Policy, 38(3), 456–473.
Juman, M. K. I., Yeasmin, K. F., Chowdhury, M. T. I., Karim, A. M., & Synthia, T. I. C. (2025). Sustainable business transformation: Design guidelines for integrating conceptual ethics in sustainability business evaluation in Dhaka, Bangladesh. International Journal of Academic Research in Economics and Management Sciences, 14(3), 849–869.
Ghosh, S., & Sen, K. (2024). Financial technology, systemic risk, and market stability in emerging economies. Journal of Financial Stability, 68, 101109.
Philippon, T. (2024). On fintech and financial market structure. Annual Review of Financial Economics, 16, 87–106.
Bhattacharjee, A., Vansal, B., & Juman, M. K. I. (2021). COVID-19 emergency: Faux healthcare service causes distress and life dissatisfaction. Asian Journal of Medicine and Health, 18(12), 53–61.
Sornette, D., & Demos, G. (2022). Financial markets as complex systems: Critical transitions and systemic risk. Journal of Economic Interaction and Coordination, 17(3), 567–589.
Vives, X. (2022). Digital disruption in banking and financial stability. Annual Review of Financial Economics, 14, 243–272.
Juman, M. K. I., Chowdhury, M. T. I., Siam, I. I. C., Yeasmin, K. F., Synthia, T. I. C., & Bhuiyan, M. M. I. (2025). Artificial intelligence and the transformation of educational access and equity. International Journal of Academic Research in Business and Social Sciences, 15(11), 52–82.
Arthur, W. B. (2021). Foundations of complexity economics. Nature Reviews Physics, 3(2), 136–145.
Bouchaud, J. P. (2021). The endogenous dynamics of markets: Price impact, feedback loops, and instabilities. Cambridge University Press.
Shiller, R. J. (2023). Narrative economics and financial volatility. American Economic Review, 113(4), 967–1001.
Bhattacharjee, A., & Juman, M. K. I. (2020). Does delay or scarcity in working capital increase unexpected financial risk for women entrepreneurs in a developing country? International Journal of Economics, Commerce and Management, 8(8), 433–446.
Buchanan, M. (2024). Markets as complex systems: Rethinking financial stability in the digital age. Nature Physics, 20(2), 170–176.
Philippon, T. (2024). On FinTech and financial market structure. Annual Review of Financial Economics, 16, 87–106.
Zhang, S., Zou, Z., & Zou, Q. (2025). Multi scale connectedness under FinTech integration: Evidence from digital financial markets. Humanities and Social Sciences Communications.
Juman, M. K. I., Hyder, M. N. A., Rahaman, M., & Yeasmin, K. F. (2025). Artificial intelligence in business decision making: Legal, ethical, and strategic implications. International Journal of Academic Research in Economics and Management Sciences, 14(4), 301–322.
Baker, S. R., Bloom, N., & Davis, S. J. (2023). Measuring economic policy uncertainty. Quarterly Journal of Economics, 138(4), 2303–2341.
Barberis, N., Shleifer, A., & Vishny, R. (2022). A crisis of beliefs: Investor psychology and financial fragility. Princeton University Press.
Yesmin, K. F., & Juman, M. K. I. (2025). Integrating social accounting into rural development policies: A study on Bangladesh’s poverty alleviation programs. Bangladesh Journal of Rural Development, 48(1), 1–46.
Bianchi, F., Bursztyn, L., & Martinez, M. (2024). Uncertainty shocks and market dynamics. Review of Economic Studies, 91(2), 689–726.
Bloom, N. (2023). The impact of uncertainty shocks. Journal of Economic Perspectives, 37(1), 3–28.
Juman, M. K. I., Yeasmin, K. F., Nahar, M. K., Jusi, A. H., & Tamanna, N. (2025). Integrating sustainable business and corporate law: A comparative analysis of legal frameworks for green governance in Bangladesh and South Asia. International Journal of Academic Research in Economics and Management Sciences, 14(4), 385–404.
Danielsson, J., Valenzuela, M., & Zer, I. (2022). Learning from history: Volatility, uncertainty, and financial stability. Journal of Financial Stability, 60, 100999.
Duffie, D. (2023). Intermediation of digital asset markets and financial stability. Journal of Finance, 78(6), 3015–3052.
Gennaioli, N., Shleifer, A., & Vishny, R. (2023). A crisis of beliefs revisited: Expectations, narratives, and financial instability. Journal of Economic Perspectives, 37(4), 3–28.
Siam, I. I. C., Juman, M. K. I., Chowdhury, M. T. I., & Farhana Yeasmin, K. (2026). Strategic Impacts of Transformational Leadership on Organizational Performance and Institutional Sustainability in Private Higher Education in Bangladesh. International Journal of Academic Research in Business and Social Sciences, 16(1), 394–406.
Auer, R., Cornelli, G., & Frost, J. (2023). Rise of the central bank digital currencies: Drivers, approaches and technologies. Journal of Financial Stability, 65, 101062.
Chowdhury, M. T. I., Juman, M. K. I., & Farhana Yeasmin, K. (2026). Harnessing Artificial Intelligence for Sustainable Edupreneurship and Next-Generation Knowledge Business Models. International Journal of Academic Research in Progressive Education and Development, 15(1), 331–361.
Berg, T., Fuster, A., & Puri, M. (2022). FinTech lending. Annual Review of Financial Economics, 14, 187–207.
He, Z., Huang, J., & Zhou, J. (2023). FinTech innovation and systemic risk. Journal of Corporate Finance, 80, 102395.
Roy, T. C., Tahera, K. T., Juman, M. K. I., Alin, A. I. J., & Jahan, I. (2026). FinTech Integration and Digital Accounting Systems in Enhancing Financial Performance of Startups. International Journal of Academic Research in Accounting, Finance and Management Sciences, 16(2), 97–114.
Juman, M. K. I., & Yesmin, K. F. (2025). Smart villages and digital inclusion: A new paradigm for rural development in Bangladesh. Bangladesh Journal of Rural Development, 47(2), 1–42
Huang, Y., Li, X., & Li, Z. (2023). Digital finance and financial stability: Evidence from emerging markets. Emerging Markets Review, 57, 101041.
Kou, G., Olgu Akdeniz, O., Dinçer, H., & Yüksel, S. (2022). FinTech investments and financial stability in the digital economy. Technological Forecasting and Social Change, 176, 121450.
Lee, I., & Shin, Y. J. (2022). FinTech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 65(1), 35–46.
Arner, D. W., Barberis, J. N., & Buckley, R. P. (2022). FinTech, RegTech, and the reconceptualization of financial regulation. Northwestern Journal of International Law & Business, 42(3), 371–413.
Arthur, W. B. (2021). Foundations of complexity economics. Nature Reviews Physics, 3(2), 136–145.
Battiston, S., Caldarelli, G., D’Errico, M., & Gurciullo, S. (2022). Leveraging the network structure of financial markets to assess systemic risk. Journal of Financial Stability, 58, 100975.
Farmer, J. D., Gallegati, M., Hommes, C., Kirman, A., Ormerod, P., & Cincotti, S. (2022). A complex systems approach to constructing better models for managing financial markets and the economy. European Physical Journal Special Topics, 231(17), 3217–3235.
Gai, P., & Kapadia, S. (2022). Networks and systemic risk in the financial system. Oxford Review of Economic Policy, 38(3), 456–473.
Vives, X. (2022). Digital disruption in banking and financial stability. Annual Review of Financial Economics, 14, 243–272.
Juman, M. K. I., Hasan, M. K., & Yeasmin, K. F. (2026). Financial Market Dynamics in the FinTech Era: A Statistical Physics-Inspired Business Analysis of Risk, Volatility, and Stability. International Journal of Academic Research in Progressive Education and Development, 15(2), 1619-1643.
Copyright: © 2026 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
