## Promise (Un)kept? Fintech and Financial Inclusion

_IMF Working Papers, June 28, 2024_

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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

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### 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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- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2024/06/28/promise-un-kept-fintech-and-financial-inclusion-550960_