Digital Transformation and Financial Inclusion

18 Pages Posted: 4 Sep 2020

See all articles by Kern Alexander

Kern Alexander

University of Zurich

Xenia Karametaxas

University of Zurich - Institute of Law; University of Geneva

Date Written: July 8, 2020


The paper explores some of the main regulatory concerns and market barriers created by the digital transformation of the financial services industry and the implications for a more socially-inclusive financial system, particularly in developing and emerging market countries. The paper considers the potential for financial technologies to enhance financial inclusion, whilst minimizing the unintended risks and consequences. In doing so, the paper discusses some of the major international initiatives to support policymakers and regulators in managing the risks associated with advances in financial technology. The paper addresses how financial inclusion has become an important public policy objective by exploring its potential to contribute to social sustainability. The paper examines fintech’s role as a driver for financial inclusion and highlights some of the main advantages and risks of the digital transformation of financial services. In considering these issues, we will analyse how the experience of some developing and emerging market countries illustrate some of the advantages and disadvantages in addressing these challenges. Finally, the paper discusses the potential for national policymakers and regulators to coordinate their efforts on a cross-border basis to take advantage of digital financial technologies whilst mitigating social inclusion risks.

Keywords: Equity, Justice, Inequality, Monetary Systems, Industrialization, Technological Innovation, Banks, Government Policy and Regulation, Sustainability, Environment, Financial Risk and Risk Management, Corporate Governance, Financial Markets

JEL Classification: G21, G18, Q5, F64, G32, G34, O16, F33, D53, D63, E42, O14, O16, Q55, Q56, Q58

Suggested Citation

Alexander, Kern and Karametaxas, Xenia, Digital Transformation and Financial Inclusion (July 8, 2020). Available at SSRN: or

Kern Alexander (Contact Author)

University of Zurich ( email )

74/22 Ramistrasse
Zurich, Zurich 8001
+41 (0)44 634 3102 (Phone)

Xenia Karametaxas

University of Zurich - Institute of Law ( email )

Raemistrasse 74/57
Zurich, CH-8001

University of Geneva ( email )

102 Bd Carl-Vogt
Genève, CH - 1205

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