Fin-Tech As a Destructive Force in the Field of Local Economic Development
2nd International Conference SINCERE 2018
38 Pages Posted: 28 Nov 2018
Date Written: October 25, 2018
The so-called ‘fin-tech revolution’ represents one of the most important recent developments in the banking and financial services sectors, possibly, some say, as important as the industrial revolution itself. This is especially the case with regard to the Global South, where the fin-tech industry is said to possess the potential to make an historic positive contribution to sustainable local economic development and poverty reduction. However, the emerging evidence from Africa, where the fin-tech industry has developed most rapidly in recent years, and in particular from Kenya – seen as the ‘best practice’ country example of the fin-tech model in action – strongly suggests that this optimism is wildly misplaced if not entirely fraudulent. On the basis of current trends and developments, in fact, a stronger argument can be made that the fin-tech industry as it is currently structured will very seriously disadvantage and even further marginalise and disempower the global poor.
Keywords: fin-tech, microcredit, M-Pesa, Kenya, Africa, sustainable development, MSME
JEL Classification: G20, N2, O16, O2, O3, O43
Suggested Citation: Suggested Citation