Bibliographic update on the role of Fintech in the financial sector

The Sustainable Development Goals (SDGs) could be considered the paramount objective for all nations in the world. In keeping with this, a sound global financial system is now required to fulfill its mandate to encourage the mobilization of private capital for the achievement of sustainable development and consistent economic growth. Blockchain, the Internet of Things, big data, and artificial intelligence are just a few of the recent technological advancements that have been made possible by digital transformation and advancement, specifically in the finance sector. Traditional banks, regulators, and policymakers are all paying close attention to the buzz surrounding Fintech. Since the 2008 global financial crisis, the integration and innovation of emerging technologies and finance have accelerated financial technology development (FinTech). In this paper, we reviewed the literature on the evolution of Fintech in terms of regulations and policies, as well as the role of Fintech in achieving financial inclusion and sustainable development goals. We reviewed the fintech ecosystem and segregated it into three segments, from 2010-2015, 2016-2020, and 2021 to present. We have discussed the existing literature from the mentioned timeline and concluded that despite being surrounded by numerous challenges, the acceptance of Fintech has boomed over the period of time and created some new avenues for the future that support future sustainable international trade while also facilitating the SDGs.

The rapid advancement of financial technology (fintech) is playing a pivotal role in transforming retailers from the informal financial sector to the formal financial sector. This paper explores the transformative role of financial technology (fintech) in promoting financial inclusion among retailers, particularly those operating within the informal financial sector. The study highlights key fintech innovations such as mobile payments, digital wallets, online banking, microfinancing platforms, Point-of-Sale (POS) systems, and digital bookkeeping. These technologies provide enhanced access to credit and financial services, improve transparency and record-keeping, reduce transaction costs, increase operational efficiency, and ensure compliance with regulatory requirements. The research emphasizes the significant impact of fintech on business operations and growth for retailers, fostering a shift from informal to formal financial sectors and contributing to long-term economic growth and stability. The study also identifies challenges and barriers to fintech adoption, including technological literacy, initial investment costs, regulatory compliance, and trust and security concerns. Policy recommendations include stronger government and regulatory support for fintech adoption, targeted financial literacy and education programs, incentives for informal retailers to transition to the formal sector, and the establishment of public-private partnerships to foster innovation. By addressing these challenges and implementing supportive policies, fintech can drive financial inclusion and economic development among retailers. Keywords: Fintech, Retailers, Financial Inclusion, Informal Financial Sector, Mobile Payments, Digital Wallets, Online Banking, Microfinancing Platforms, Point-of-Sale (POS) Systems, Digital Bookkeeping.

This chapter takes stock of the current state of financial inclusion in Latin America and discusses recent developments including innovations, branch expansions, and banks’ use of agent networks to further extend their reach. On the one hand, the chapter documents that Latin America has made substantial progress in terms of inclusion thanks to cases that have demonstrated the importance of strategies targeting households and firms previously ignored by traditional banks. On the other hand, the chapter emphasizes that important barriers to financial inclusion persist, with several countries in the region exhibiting within-country gaps and gaps to not only the advanced economies but also other peer developing ones. Technological innovation is playing a crucial role closing the gaps that currently characterize the region. Finally, the chapter suggests that to develop a stable financial system with responsible consumers, the ongoing progress in inclusion needs to go together with financial education.

Objective: The objective of this study is to analyze the importance of effective management of financial inclusion and education in the context of sustainable development, highlighting its impact on the achievement of the SDGs. It also aims to identify the main challenges faced by vulnerable populations in accessing financial services and propose comprehensive strategies to improve financial literacy and accessibility, contributing to a more inclusive and equitable society. Theoretical Framework: For this research we have several relevant approaches and theories such as: financial inclusion theory; its relationship with the SDGs; financial education theory, as well as inclusion and sustainable development. Method: The methodology adopted for this research comprises a qualitative approach, based on the review of documents, public policies and government programs on financial inclusion and education to assess their effectiveness with respect to the SDGs. Data from the World Bank's Data Dashboard (The Global Findex Database, 2024) was analyzed using content analysis, which allowed identifying key themes and gaining a deeper understanding of the perceptions and experiences related to the evaluated programs.. Results and Discussion:The results obtained revealed that, although there is progress in financial inclusion in Mexico, there are still areas of opportunity to improve access to and use of financial services, especially among the most vulnerable segments of the population. It is necessary to highlight the need to continue working on the promotion of financial inclusion in Mexico and in other regions, through public policies that promote financial education, technological innovation, and collaboration between the public and private sectors. Research Implications: The practical implications of this research include the improvement of public policies and programs focused on financial inclusion and education, promoting more equitable access to financial services in vulnerable populations. At a theoretical level, the study provides a deeper understanding of the relationship between financial management and sustainable development, offering a conceptual framework that links financial inclusion with the SDGs. This strengthens the academic analysis on how financial education can drive inclusive economic growth. Originality/Value: The originality and value of this research lies in its focus on the direct relationship between financial inclusion and financial education with the SDGs, an area underdeveloped in the literature. The research offers a new perspective by assessing how financial education can be a key tool for achieving equitable and sustainable development. Its contribution to the literature is in providing a detailed analysis of public policies and government programs, highlighting their effectiveness and identifying areas for improvement, which brings a comprehensive and updated approach to the study of financial inclusion.

Financial technology (fintech) is a new challenger for traditional banking services. Notably, banks that have failed to adapt and incorporate new technologies in finance have faced stiff competition from digital banking, lending platforms, and digital payment solutions. This study focused on the impact of financial technology on traditional banking institutions and the challenges and opportunities presented by emerging digital financial solutions. The study sought to understand the extent of Fintech’s disruption in operation and the role of traditional banking systems. It delved into the emerging trends in finance, such as mobile banking, digital payment, and emerging solutions in lending. The study focused on fintech innovation in the Moroccan financial institutions. Fintech, like any other emerging technology, comes with its share of challenges. Regulatory concerns, competition between Fintech firms, and issues of cybersecurity in finance persist. This research assessed the transformative role of financial technology in banking and the overall financial inclusion. The methodology entails reviewing financial publications on the role of fintech in the traditional banking system, the World Bank and Morocco’s central bank reports, and other material from relevant sources such as the United Nations Development Program (UNDP), the United Nations Capital Development Fund (UNCDF), and industry experts. The findings emphasized the need for collaboration among financial institutions, policymakers, and fintech firms in sustaining an inclusive financial ecosystem.

This paper explores the correspondence between financial literacy, financial education, and financial inclusion, as well as the impact these interdependent concepts have on economic and social development. The research was structured into three main stages: a theoretical analysis of the concepts, quantitative research for testing the formulated hypotheses, and qualitative research to deepen the understanding of perceptions regarding the studied phenomenon. The results highlight that financial literacy provides the necessary foundations for individuals to understand basic financial concepts and make informed financial decisions. Financial education extends this understanding by developing advanced financial skills that enable individuals to apply financial concepts in complex contexts. Similarly, financial inclusion relies on financial literacy and financial education to ensure equitable access to financial services and to support the full integration of all individuals into the financial system. Thus, financial literacy, financial education, and financial inclusion are three fundamental, closely interconnected concepts that play an essential role in improving the economic well-being of individuals and society. While financial literacy forms the basis of the essential knowledge required for financial management, financial education builds upon this knowledge and develops advanced financial skills. Financial inclusion is a direct outcome of these processes, ensuring fair access to financial services and promoting a more balanced and sustainable economic system. The study emphasizes the importance of integrating these dimensions into public policies and sustainable development strategies.

This study investigates the implications of the interaction of financial literacy, regulatory technology, and decentralized finance applications for financial sector development. A two-step analytical regression approach on EViews 10 was used, which performs a one-factor analysis for each variable to identify the individual impact of each factor. A linear FMOLS approach was used to evaluate the cooperative effect of integration. The methodology was implemented on a dataset comprising 2,880 observations from 23 financial institutions in Jordan.The findings support the hypothesized dynamic interrelations between the essential Fintech factors relevant to the sustainable development of the financial sector, including significant and insignificant factors with the impact of inflation, which provides an adequate understanding of Fintech’s evolution. Additionally, the outcomes consider post-2017 regulatory changes that reflect the role of supervision and regulation for the financial sector’s flexibility and efficiency. Therefore, the results reveal the essential contribution of integrating decentralized finance applications, financial literacy, and regulatory technology to the development of Jordan’s financial sector. Financial literacy serves as a facilitator, regulatory technology is a compliance enabler, and decentralized finance applications are driving forces of innovation and financial inclusion, ensuring a robust and sustainable financial ecosystem. It is shown that the interaction of factors forces the sector’s development, reflecting the world’s trend in digital inclusion and viable financial development.

After 65 years of independence, large sections of Indian population still remain unbanked. This has led generation of financial instability and lower income group who do not have access to financial products and services. However, in the recent years the government and Reserve Bank of India has been introduced the concept and idea of financial inclusion.Financial inclusion is an important method of economic development of a nation. Financial sector inclusion is very important component of inclusive growth strategy. Financial inclusion can be described as the delivery of banking and other financial services at affordable costs to the vast section of the disadvantaged and low income groups. It plays very vital role in economic progress. Financial sector inclusion helps in eliminating poverty, reducing inequality, eliminating unequal access to opportunities, reducing inequalities of choice. This study tries to understand policy initiatives by the govt for financial inclusion, reasons for financial exclusion, steps taken by the government for financial inclusion and implications of financial inclusion. This study is mainly based on secondary data and collected information from books, journals and website.

The role of fintech, mineral resource abundance, green energy and financial inclusion on ecological footprint in E7 countries: New insight from panel nonlinear ARDL cointegration approach

This study looks at the evolution of FinTech from a disruptive force to acomplementary element within the financial landscape. Drawing on disruptiveinnovation theory and financial intermediation theory, this study takes a holisticapproach to uncover the mechanisms driving this change. Data was collectedusing a structured questionnaire distributed to 162 IT employees of financialinstitutions in Tanzania. The data was analyzed using structural equationmodeling with Smart PLS. The results show the positive influence of thescalability of FinTech systems and online authentication on financial inclusionand emphasize their central role in expanding access to financial services. Theeffectiveness of online authentication in promoting financial inclusion isparticularly noteworthy. However, the results show that product substitutabilityhas a negligible influence on financial inclusion, pointing to the need for astrategic reorientation of resource allocation. These findings provide industrypractitioners with valuable strategies to navigate the complex intersection ofFinTech and traditional banking. This study contributes to the theoreticaldiscourse by presenting a unique model that integrates disruptive innovationtheory and financial intermediation theory. It argues for concerted efforts to useFinTech as a catalyst for promoting financial inclusion and draws attention toits potential as a powerful enabler for inclusive financial systems. Keywords: Financial inclusion; financial technology; FinTech; Disruptive Innovation;Financial Intermediation.

This study looks at the evolution of FinTech from a disruptive force to acomplementary element within the financial landscape. Drawing on disruptiveinnovation theory and financial intermediation theory, this study takes a holisticapproach to uncover the mechanisms driving this change. Data was collectedusing a structured questionnaire distributed to 162 IT employees of financialinstitutions in Tanzania. The data was analyzed using structural equationmodeling with Smart PLS. The results show the positive influence of thescalability of FinTech systems and online authentication on financial inclusionand emphasize their central role in expanding access to financial services. Theeffectiveness of online authentication in promoting financial inclusion isparticularly noteworthy. However, the results show that product substitutabilityhas a negligible influence on financial inclusion, pointing to the need for astrategic reorientation of resource allocation. These findings provide industrypractitioners with valuable strategies to navigate the complex intersection ofFinTech and traditional banking. This study contributes to the theoreticaldiscourse by presenting a unique model that integrates disruptive innovationtheory and financial intermediation theory. It argues for concerted efforts to useFinTech as a catalyst for promoting financial inclusion and draws attention toits potential as a powerful enabler for inclusive financial systems. Keywords: Financial inclusion; financial technology; FinTech; Disruptive Innovation;Financial Intermediation.

The study aimed to investigate the relationship between ICT usage, financial literacy, and digital financial inclusion among the youth in Kampala, Uganda. It primarily aimed to address the existing gap in understanding how these two variables, ICT usage and financial literacy, serve as predictors of digital financial inclusion, particularly among young populations who are often financially excluded. The investigation employed a cross-sectional research design, utilizing primary data collected through structured questionnaires from 294 youths in Kampala. Descriptives, correlation, and regression analyses were used to assess the relationships between ICT usage, financial literacy, and digital financial inclusion. The study’s key findings revealed that both ICT usage and financial literacy have significant positive effects on digital financial inclusion. Specifically, ICT usage and financial literacy were found to explain 42% of the variation indigital financial inclusion. The remaining 58% could be attributed to other factors not included in this study. The findings pose significant implications for policymakers and stakeholders involved in financial inclusion initiatives. The study highlights the critical role that ICT plays in extending financial services to previously underserved populations, particularly in regions with limited access to traditional banking infrastructure. Moreover, the findings underscore the need to integrate financial literacy programs into digital financialinclusion strategies. This approach would not only enhance youths’ capacity to use digital financial tools but also improve their financial well-being by fostering better financial decision-making, saving, and investment behaviors. This study contributes to the body of nowledge by providing further support for the relationship between ICT Usage, financial literacy, and digital financial inclusion among youth. It further unveils a new model that suggests and demonstrates that digital financial inclusion is primarily predicted by ICT Usage and financial literacy, which has not been explored in the digital financial inclusion literature, especially among youth in the context of developing countries. This adds to the Technology Acceptance Model and Systems Theory of Financial Inclusion, which emphasize the importance of technology and financial education in enhancing access to financial services.

Financial technology innovations, known as Fintech, are a fundamental tool for advancing financial inclusion by offering innovative and accessible solutions to individuals and businesses previously excluded from traditional financial services. This role is particularly relevant in Latin American countries, where geographic dispersion and a lack of financial literacy limit financial access. This study aims to analyze the impact of financial technology on financial inclusion in Latin American countries by employing a balanced panel data model. The analysis uses cross-sectional data from the years 2011, 2014, 2017, and 2021. Fintech is proxied by fixed broadband subscriptions (per 100 people), while financial inclusion is captured through the use of digital payments, along with other variables related to access and usage of financial services and selected macroeconomic control variables. The main findings highlight the importance of digital infrastructure in facilitating formal access to the financial system, particularly through account ownership and savings capacity, though not through access to credit.

This study aims to determine the effect of the use of Fintech on financial literacy and inclusion in Micro, Small and Medium Enterprises (MSMEs) in Bengkulu City. The benefits of this research are as material for consideration and additional information in developing strategies to increase financial literacy and financial inclusion, especially those related to the provision of Fintech-based financial services.The data used in this study are primary data, using a questionnaire distributed to respondents (MSME actors in Bengkulu City), observation and documentation. The analytical tool used is to use quantitative methods with the help of SPSS 21.00.The results showed that the use of fintech has an effect on financial literacy and inclusion in Micro, Small and Medium Enterprises (MSMEs) in Bengkulu City. The limitation in this study is the lack of the number of respondents in returning the questionnaire.With the development of fintech in Bengkulu City and the use of fintech services for MSME players in Bengkulu City, it can open access to business finance more easily and quickly from banking institutions and savings and loan corrections. In addition, the use of application features is used as an effort to market MSME products. The role of fintech in financial inclusion in MSMEs is that Fintech contributes greatly to the empowerment of MSMEs and the local economy. In addition, the use of Fintech for MSME players in Bengkulu City can increase financial literacy in the field of economics

RuralTech: AI-Driven Innovation for Transforming Rural Entrepreneurship is an essential work for researchers, educators, policymakers, and entrepreneurs interested in sustainable development and digital transformation in rural territories. The book offers a comprehensive and up-to-date perspective on how artificial intelligence, the Internet of Things, digital governance, and renewable energy are redefining rural entrepreneurship—not only from a technological standpoint, but also from social, economic, and environmental perspectives. This work stands out for its systemic approach and logical sequence, articulated through five interconnected chapters: from the foundations of innovation and digitalization in rural ecosystems, through the adoption of emerging technologies in agricultural production, the impact of artificial intelligence on financial inclusion and decision-making, the relevance of social innovation and sustainability in rural communities, and finally, the analysis of public policy and governance models for the future of rural entrepreneurship. The authors interpret the field from a multidisciplinary and comparative perspective, integrating experiences from Latin America, Europe, and Africa, with a deep focus on the Colombian case. The book highlights the importance of local technology appropriation, community participation, and co-creation of solutions adapted to territorial realities. Its logical sequence allows readers to understand that rural innovation is not a linear process, but a dynamic evolution that depends on the integration of actors, connectivity, resilience, and sustainability. The innovative character of the book lies in its proposal of isometric models that integrate hardware, software, and governance, validated in contexts of low connectivity and high environmental vulnerability. It also addresses topics such as algorithmic ethics, blockchain-based traceability, digital and energy inclusion, and the transition toward circular and sustainable economies. The relevance of the results is reflected in the empirical evidence presented: improvements in agricultural productivity, cost reduction, strengthening of community resilience, advances in financial and digital inclusion, and the consolidation of ethical and participatory governance frameworks. RuralTech not only diagnoses the asymmetries and challenges of the rural world, but also offers methodological and policy pathways for building inclusive and sustainable innovation ecosystems, positioning rural territories as laboratories for modernization and equity.