In recent years, developments in financial technology have brought about a major transformation of the financial environment, particularly in economies that are still growing. Among the digital technologies that are helping to close the gap in financial inclusion are mobile banking, peer-to-peer lending, digital payments, and blockchain-based services. This study investigates how these technologies are helping to bridge the gap. Previously unbanked and underbanked communities are now gaining access to crucial financial services as a result of these advances, which is boosting economic empowerment and reducing levels of poverty.
The research sheds light on the primary factors that contribute to the adoption of financial technology, including the widespread use of smartphones, regulatory frameworks, and relationships between governments, financial institutions, and technology suppliers. In addition to this, it investigates issues such as the lack of digital literacy, the constraints of infrastructure, and worries around cybersecurity. Fintech solutions such as M-Pesa in Kenya and Alipay in China have become lifelines for millions of people, as demonstrated by case studies from places such as Sub-Saharan Africa, Southeast Asia, and Latin America.
In spite of the progress that has been made, the paper comes to the conclusion that in order for fintech to realize its full potential in terms of elevating financial inclusion, stakeholders need to overcome the obstacles that are associated with legislative inconsistencies, unequal access to technology, and socio-cultural variables. Fintech technologies, in general, have a great deal of promise for developing economies; nonetheless, ongoing efforts are required to provide equitable and scalable solutions that foster inclusive growth.
Keywords: Blockchain, Financial Technology, Financial Inclusion, Mobile Banking, Digital Payments, Developing Economies, and Economic Empowerment.
V. Basil Hans (2024). Fintech Innovations and their Impact on Financial Inclusion in Developing Economies. Journal of International Economics and Finance, 4: 1, pp. 65-84.