Fintech Development and Savings, Borrowing and Remittances: A Comparative Study of Emerging Economies

Abstract

Fintech is rapidly changing the financial landscape, especially in the post-COVID era. This study uses data from the world’s first global ranking of fintech ecosystems, the Global Fintech Index (GFI), to investigate the linkages between fintech development and demand for savings, borrowing, and remittances for 16 of the world’s largest emerging economies. Our results show that fintech development plays a key role in improving financial inclusion. However, considerable heterogeneities persist across population groups and regions. Evidence also suggests that access may not translate to greater usage of financial services. The findings have important implications for future models of financial inclusion.

Keywords: fintech, digital financial services, financial inclusion, emerging economies, vulnerable populations, financial security

JEL Classification: D14, G21, G23, G50, O10, O33 O57, R20