Assessing the Impact of Financial Technology (Fintech) on Financial Inclusion in Egypt: An Applied Study

Abstract

Financial technology (Fintech) has emerged as a transformative force in the global financial landscape, offering innovative solutions to longstanding challenges. This study delves into the Egyptian context to assess the profound impact of fintech on financial inclusion—a crucial factor for economic development and social equity. Through empirical analysis, this research endeavors to unveil the multifaceted ways in which fintech is reshaping the financial landscape in Egypt, particularly regarding expanding access to financial services for underserved and unbanked populations. The data was collected from financial statements of banks over the period of 2018 – 2022, with keywords identified in annual reports to create dummy variables for analysis and analyzing it by STATA through logistic regression to determine whether there is a significant impact or not. The results reveal that the research supports the hypothesis that fintech has a significant effect on financial inclusion, as well as on reliability, availability, accessibility, and efficiency of electronic government services. Thus, this study contributes valuable insights for the Egyptian government to develop electronic payment systems and regulations that maximize the availability, accessibility, efficiency, and responsiveness of electronic government services, ultimately improving the lives of the nation’s residents. Keywords: Fintech, E-payment bills, Modes of payment, E-government system, Financial Inclusion