FinTech, Financial Inclusion, and Global Financial Stability

Abstract

This study aims to analyze the relationship between financial technology, financial inclusion, and global financial stability using a Systematic Literature Review approach. By reviewing several core and supporting articles published within the past five years, the research reveals that FinTech plays a dual role as both a catalyst for economic efficiency and a potential source of systemic risk. FinTech has been shown to enhance financial stability by improving access to formal financial services, reducing transaction costs, and enabling greater diversification of financial risks. However, this rapid digital transformation also introduces new challenges related to data protection, cybersecurity, and the need for adaptive regulatory frameworks that can respond to technological innovation. The analysis indicates that digital financial inclusion contributes to economic resilience and broadens financial participation when supported by strong consumer protection policies and adequate financial literacy. Therefore, this study emphasizes the importance of close collaboration among regulators, financial institutions, and the technology sector in building an inclusive, resilient, secure, and sustainable digital financial system in the era of global digital transformation.