Financial Technology (Fintech) and Financial Inclusion: Analyzing the Role of Innovative Technologies in Expanding Access to Financial Services
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Abstract
This study examines the crucial role of Financial Technology (Fintech) in improving financial inclusion, with a specific focus on how innovative technologies are increasing the availability of financial services for marginalised communities. The report commences by providing a clear definition of Fintech and its extent, followed by a summary of financial inclusion, emphasising its importance in promoting economic expansion and mitigating inequality. A thorough literature analysis examines the historical background of financial inclusion, the development of Fintech, and the current study on how they cross. The report explores significant Fintech advancements, including mobile banking, digital payments, blockchain, and AI-driven services. It assesses how these innovations decrease transaction costs, enhance accessibility, and tackle the obstacles encountered by conventional financial institutions. The study additionally evaluates the impact of Fintech in reaching individuals without access to banking services and those with limited access, improving their understanding of financial matters, and providing assistance to microfinance and small enterprises. The report also examines the legislative obstacles, cybersecurity risks, the disparity in digital access, and the difficulties of trust in the adoption of Fintech. Lastly, it examines possibilities for future growth, such as developing technology and cooperative initiatives, and offers suggestions for policymakers and stakeholders to effectively utilise Fintech's potential in promoting financial inclusion.