Promise (Un)kept? Fintech and Financial Inclusion
IMF Working Papers, June 28, 2024
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- Promise (Un)kept? Fintech and Financial Inclusion
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Bibliographic details
- Authors: Serhan Cevik
- Published: June 28, 2024
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400279195.001
Overview and context
- Fintech has emerged as an engine of change with the promise to expand access to financial services and boost financial inclusion.
- Ownership of accounts in formal financial institutions increased from 51 percent of the world’s adult population in 2011 to 76 percent in 2021, with significant cross-country variation.
- Study scope: panel of 84 countries over the period 2012–2020.
Key empirical findings
- Effect heterogeneity by instrument:
- Digital lending has a significant negative effect on financial inclusion.
- Digital capital raising is statistically insignificant for financial inclusion.
- Sample-wide effects:
- The overall impact of fintech is statistically insignificant for the full sample of countries.
- In developing countries, the overall impact of fintech becomes positive and statistically highly significant.
Policy implications and recommendations
- Develop an adequate regulatory framework that balances fostering innovation with ensuring equitable treatment of individuals and groups.
- Strengthen financial education to improve users’ ability to benefit from fintech services.
- Build strong regulatory institutions to support oversight and enforcement.
- Implement well-calibrated prudential regulations to ensure a level playing field and effective supervision.
Publication and metadata
- Author: Serhan Cevik
- Publication type: IMF Working Papers, Working Paper No. 2024/131
- Pages: 17
- Volume: 2024
- Issue: 131
- DOI: https://doi.org/10.5089/9798400279195.001
- Stock No: WPIEA2024131
- ISBN: 9798400279195
- ISSN: 1018-5941
Source: IMF Working Paper "Promise (Un)kept? Fintech and Financial Inclusion" by Serhan Cevik, June 28, 2024.
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