Is Fintech a Solution for Financial Inclusion and Women Empowerment?

Abstract

Financial Inclusion seems to be light at the end of the tunnel to achieve the millennium development goals (MDGs) which can eradicate the poverty and help people to come out of abject poor condition. On the other hand, Financial Technology (FinTech) is spreading at a fast pace and accessed by the masses. Thus, this technological innovation which helps to deliver financial services more conveniently and efficiently can hold the key for financial inclusion and women empowerment through financial inclusion. This study used data from World Bank’s 2017 Global Findex report and tried to find a relation between FinTech and financial inclusion from 144 countries. Few parameters from the report were taken to measure the financial inclusion variable and some indicators were selected to assess the FinTech reach. The results suggested that there is a strong relationship between independent variable FinTech and dependent variable financial inclusion for the whole population and women population alone. The study also found that low-income countries are financially excluded while as high-income countries are more inclusive except few exceptions. The study will help to understand the impact of FinTech on the inclusion of excluded population from the financial system and can act as a solution for reducing poverty and women empowerment.

Keywords: Financial Technology, Global Findex Report, World Bank