Fintech and Financial Inclusion: Opportunities, Challenges, and Future Direction

Abstract

This study presents a systematic literature review on the role of financial technology (fintech) in expanding financial inclusion across global, regional, and national contexts. A thematic analysis of selected articles identifies four major themes: fintech’s contribution to financial access, its support for micro, small, and medium-sized enterprises (MSMEs) and vulnerable communities, implementation challenges, and future directions for research and policy. The findings reveal that fintech, through digital payments, mobile banking, e-wallets, and peer-to-peer (P2P) lending, has significantly improved account ownership and participation in the formal financial system. Beyond its economic function, fintech also demonstrates a strong social dimension by providing financing opportunities for small businesses and sustaining financial access for low-income and rural communities, particularly during the COVID-19 pandemic. Despite these positive impacts, substantial challenges remain, including uneven digital infrastructure, low levels of financial literacy, regulatory gaps, and concerns about consumer protection and data security. Future research and policy should emphasize integrating emerging technologies such as artificial intelligence and blockchain, strengthening digital literacy programs, and designing adaptive regulations that balance innovation with consumer trust.