The Effect of FinTech Adoption and Financial Inclusion in Emerging Economies

Abstract:

This study critically examined the relationship between FinTech adoption and financial inclusion in emerging economies, drawing upon a wide body of recent literature. The findings clearly indicate that FinTech has significant potential to democratize financial services and close access gaps among underserved populations. Mobile technologies, digital wallets, and alternative credit systems have already demonstrated tangible impacts in improving economic participation and financial well-being. However, the review also underscores that the benefits of FinTech are not automatically realized. Adoption is influenced by financial literacy, demographic profiles, and institutional readiness. Without addressing these contextual factors, the digital revolution risks leaving behind those most in need of financial inclusion. Hence, a singular focus on technological innovation is insufficient; instead, it must be accompanied by inclusive design principles, regulatory safeguards, and user-focused education programs. FinTech offers a promising pathway to achieving financial inclusion in emerging markets, but realizing this promise requires a coordinated and inclusive ecosystem approach. Future research should focus on longitudinal and mixed-method studies that capture the dynamic and contextual nature of FinTech adoption. Moreover, policymakers and stakeholders must prioritize equitable access, user empowerment, and ethical governance to ensure that FinTech contributes meaningfully to inclusive and sustainable development.