Fintech and financial inclusion for economic transformation
Keywords:
Fintech, Financial Inclusion, Economic Transformation, Digital Finance, Access to FinanceAbstract
This study explores the dynamic relationship between fintech, financial inclusion, and economic transformation, emphasizing how digital financial technologies can drive inclusive and sustainable economic growth. Data was obtained from international monetary fund (IMF), and respect of 48 African countries for the study. Using least square regression, and Structural Equation Modeling (SEM), the research analyzes how fintech promotes financial inclusion and, in turn, how both influence key economic indicators such as GDP growth, inflation, interest rates, and foreign investment. The findings show that fintech significantly enhances access to financial services, especially for underserved populations, thereby fostering financial inclusion. Financial inclusion contributes to economic transformation by improving access to credit, encouraging entrepreneurship, and enabling broader participation in formal economic systems. The research recommends policies that promote innovation while ensuring digital literacy, consumer protection, and financial infrastructure development. Future research should explore how fintech affects different demographic groups, including women, youth, and rural communities, to reveal potential disparities in access and benefits. This study contributes meaningful insights for policymakers and development actors aiming to leverage fintech for inclusive and transformative economic development.
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