Issue Details

THE ROLE OF FINTECH IN FINANCIAL INCLUSION: CHALLENGES AND OPPORTUNITIES

ABSTRACT

Financial inclusion remains a critical global challenge, particularly in developing economies where access to traditional banking services is limited. Financial Technology (FinTech) has emerged as a transformative force in bridging this gap by providing innovative digital solutions that enhance accessibility, affordability, and efficiency in financial services. This research paper explores the role of FinTech in promoting financial inclusion, examining the mechanisms through which digital financial services—such as mobile banking, digital wallets, peer-to-peer lending, and blockchain technology—enable broader financial participation. The study analyzes how FinTech addresses traditional banking barriers, including high transaction costs, geographical constraints, and complex regulatory requirements. It also highlights the impact of FinTech on underbanked and unbanked populations, demonstrating its potential to empower small businesses, rural communities, and marginalized groups by facilitating seamless transactions, credit access, and investment opportunities. Despite its advantages, FinTech-driven financial inclusion faces several challenges, including cybersecurity risks, regulatory compliance, digital literacy gaps, and concerns over data privacy. This paper critically evaluates these challenges and discusses potential strategies for mitigating risks while fostering an inclusive digital financial ecosystem. By examining global case studies and empirical data, this research provides valuable insights into the opportunities FinTech presents for advancing financial inclusion while offering policy recommendations to maximize its benefits. Ultimately, the paper underscores the need for a collaborative approach involving governments, financial institutions, and technology firms to create a sustainable and inclusive digital financial landscape.

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