FinTech as a transformative model for financial inclusion : a systematic review

Abstract

Framework: The convergence of finance and technology has dramatically altered the financial industry, resulting in the rise of the FinTech phenomenon and posing a challenge to conventional financial practises. FinTech platforms promise numerous benefits to end users, including lower transaction costs and improved access to financing and investment, which is especially advantageous to underserved populations in less developed countries. These are regions where the financial industry is discovering a wide range of potential customers, ultimately contributing to the goal of Financial Inclusion. Objective: Based on this premise, this research critically examines FinTech's role in promoting Financial Inclusion scrutinising the current state of knowledge on the matter. It aims to evaluate its potential as a transformative model with a specific focus on identifying the precise components necessary to promote the domain of Digital Financial Inclusion. Methodology: This study employs a systematic review methodology to analyse academic research, explore phenomena, challenges, inconsistencies, and ongoing disputes related to the subject matter, thereby establishing a foundation for future research and knowledge dissemination. Results: The research substantiates FinTech's role in advancing Financial Inclusion, thereby acknowledging its transformative potential and unique ability to address evolving global financial needs, democratising financial services. The study contributes by constructing a precise theoretical framework for Digital Financial Inclusion, incorporating dimensions of Financial, Digital, and Social Inclusion, all contingent on a supportive Regulatory and Legal framework.