WHAT ROLE DO FINTECH COMPANIES PLAY IN ENHANCING FINANCIAL INCLUSION IN EMERGING MARKETS?
DOI:
https://doi.org/10.53555/eijbms.v10i1.193Keywords:
Financial inclusion, Fintech, Emerging markets, Digital lending, Mobile money platformsAbstract
Financial inclusion is important for economic development as it offers access to key financial services to individuals and businesses, especially in emerging markets. The emergence of financial technology (fintech) revolutionized financial inclusion by bypassing the conventional constraints of geographic distance, high transaction costs, and poor banking infrastructure. This paper examines the contribution of fintech companies towards promoting financial inclusion in emerging markets through an assessment of innovative solutions like mobile money platforms, digital lending, and alternative credit scoring models.
By examining the cases of successful fintech implementations like M-Pesa in Kenya and Paytm in India, the research illustrates how fintech solutions have increased financial access, facilitated economic participation, and led to socio-economic development. The paper also discusses challenges like regulatory obstacles, cybersecurity threats, and digital literacy gaps that can impede the adoption of fintech. While fintech offers a viable roadmap for inclusive financial systems, its sustained success calls for cooperation among policymakers, banks, and technology providers. By overcoming existing barriers, fintech holds the key to creating sustainable financial inclusion, decreasing income inequality, and ensuring economic resilience in emerging markets.
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