The Role of Fintech Services in Expanding Financial Inclusion: Evidence From Developing Economies
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The proliferation of FinTech services has become a transformative force in the financial landscapes of developing economies, reshaping access to credit, payments, savings, and insurance for populations historically excluded from formal financial systems. This article investigates the mechanisms through which FinTech expands financial inclusion, examining digital payment ecosystems, mobile money platforms, peer-to-peer lending, digital credit scoring, and micro-insurance innovations. Drawing on cross-country experiences from Africa, South Asia, and Central Asia, the analysis reveals that FinTech enables inclusive finance through reduced transaction costs, improved accessibility, data-driven risk assessment, and the emergence of alternative distribution channels. Nevertheless, structural constraints—ranging from regulatory gaps and digital illiteracy to infrastructural deficiencies and cybersecurity risks—limit the extent of FinTech’s impact. The study contributes a nuanced analytical framework explaining how FinTech both accelerates and complicates financial inclusion within the socio-economic contexts of developing countries.
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