The FinTech sector and aspects on the financial inclusion of the society in EU countries

Abstract

PURPOSE: The purpose of the article is to analyze the impact of FinTech factors on the financial inclusion of the society. The explanatory variables define the level of development of the FinTech sector in a given EU country. The article analyzes the impact of the FinTech sector on the financial inclusion of society, defined as the 1-% model of people having a bank account and the 2 -% model -% of people with access to internet banking.

DESIGN/METHODOLOGY/APPROACH: As part of the research, an analysis of factors was carried out from the universally understood banking environment influencing the FinTech digital inclusion of society in the European Union countries in 2012-2019. The data for the research was obtained from the IMF (Financial Access Survey), ECB (Statistical Data Warehouse), Eurostat, BIS, ESMA databases.

FINDINGS: The article shows the important relationships between FinTech variables and the financial inclusion of society. The existing literature research was confirmed and new variables influencing financial inclusion were identified, including functioning of the regulatory sandbox and innovation hub as well as the level of employment in the area using information and communication technology - ICT.

PRACTICAL IMPLICATIONS: The article suggests creating an environment conducive to the implementation of financial innovations that improves the level of financial inclusion.

ORIGINALITY/VALUE: The digitization of banking services in recent years has considerably influenced the way the society uses banking services. The increasing use of the Internet to use banking services allows a wider group of people to access these services.