Fintech and financial inclusion in developing countries

Financial inclusion is identified as a driver of sustainable development and a necessary condition for social and economic development. Yet, most people in developing countries face numerous constraints and barriers that exclude them from the financial system. The recent fintech developments and their ability to reduce these constraints promise to be a potentially useful strategy to enhance financial inclusion. In this chapter, we discuss financial inclusion and provide insights into the current state of fintech in the developing world particularly, Mobile Money—on financial inclusion and development outcomes. Being global leaders in mobile money, Sub-Saharan Africa have set the standards for other developing countries to replicate for enhanced financial inclusion. We also show that the implications and impacts of different forms of fintech on financial inclusion, and through financial inclusion on social and economic outcomes, represent one of the most exciting and important research frontiers in the field of development finance. The rapid evolvement of fintech products however poses regulatory challenges and calls for careful assessment of regulatory approaches for instance innovation offices, regulatory sandboxes, and RegTechs in regulating the financial ecosystem.