From the Margins to Mainstream: Fintech's Quest for Financial Inclusion in Emerging Markets

Abstract

In contemporary times, governments in developing and emerging economies have noticed an observable inclination to adopt financial technology (Fintech) to enhance financial inclusion and integration within their respective nations. The primary purpose of this adoption is to alleviate poverty rates. This study aims to examine the effectiveness of Fintech innovations in facilitating financial inclusion, focusing on India as a representative case. The researchers employed a range of research methodologies, including doctrinal, sociological, and comparative approaches, to carry out content analysis. The present study investigated various primary and secondary sources, encompassing legislative documents, scholarly articles, newspaper reports, and policy documents. The findings revealed an increasing gap in financial inclusivity, despite significant endeavors undertaken by governmental bodies, regulatory authorities, and monetary establishments to establish digital platforms, advocate for smartphone usage in mobile transactions, deploy automated teller machines (ATMs), and foster the adoption of mobile money services. The presence of this disparity can be ascribed to a multitude of factors, encompassing but not restricted to low levels of literacy, inadequate infrastructure, intermittent electricity supply, limited mobile network reach in rural areas, frequent breakdowns in banking networks, levies and fees imposed, discrepancies in information accessibility, and violations of data confidentiality. This study emphasizes integrating Fintech-enabled financial inclusion to tackle poverty in developing and emerging economies. This study offers significant insights for researchers exploring the impact of technology on financial inclusion. It also advises financial technology policymakers and practitioners on how to improve financial inclusion strategies in these regions. The research also suggests future research on women's views and expectations of Fintech and other financial services.