Role of Fintech Companies in Increasing Financial Inclusion

Authors

  • Reena Agrawal   Jaipuria Institute of Management, Lucknow

Keywords:

Financial Inclusion, Fintech Company, Developing Nations, Economic Growth.

Abstract

Fintech companies have transformed the financial service sector. Fintech companies have proved to be valuable along with the existing conventional structure and are possibly playing a vital role in promoting financial inclusion. Yet, there is inadequate consideration about the role of fintech companies in enhancing financial inclusion. Hence this paper had been taken up to address how fintech companies contribute in enhancing financial inclusion. This is an exploratory study. The findings of this study shows how fintech companies have acted as innovators and capitalized on the technology to augment the accessibility of financial products and services to the people living at the grass root level and thus enhanced the financial inclusion in all the nations specially the developing nations.

Downloads

Download data is not yet available.

Downloads

Published

2022-06-01

How to Cite

Agrawal, R. (2022). Role of Fintech Companies in Increasing Financial Inclusion. Journal of Applied Management- Jidnyasa, 14(1), 24–36. Retrieved from http://simsjam.net/index.php/Jidnyasa/article/view/170979

Issue

Section

Research Papers

References

Abor, J. Y., M. Amidu, and H. Issahaku. 2018. “Mobile Telephony, Financial Inclusion and Inclusive Growth.†Journal of African Business 19 (3): 430–453.

Agrawal, G., & Jain, P. (2019). Digital financial inclusion in India: a review. Behavioral Finance and Decision-Making Models, 195-203.

Aker, J., R. Boumnijel, A. McClelland, and N. Tierney. 2011. “Zap It to Me: The Short-Term Effects of a Mobile Cash Transfer Program.†Centre for Global Development Working Paper Series, No. 263. https://www.cgdev.org/sites/default/files/1425470_file_Aker_et_al_Zap_It_to_Me_FINAL.pdf.

Alliance for Financial Inclusion (AFI). 2018. Fintech for Financial Inclusion: A Framework for Digital Financial Transformation. Kuala Lumpur: AFI.

Andrianaivo, M., and K. Kpodar. 2012. “Mobile Phones, Financial Inclusion, and Growth.†Review of Economics and Institutions 3 (2): 30

Aslan, G., C. Deléchat, M. M. Newiak, and M. F. Yang. 2017. “Inequality in Financial Inclusion and Income Inequalityâ€. International Monetary Fund Working Paper Series, No. 17/236. https://www.imf.org/en/Publications/WP/Issues/2017/11/08/Inequality-inFinancial-Inclusionand-Income-Inequality-45344.

Asongu, S. A. 2015. “The Impact of Mobile Phone Penetration on African Inequality.†International Journal of Social Economics 42 (8): 706–716. Asongu, S. A., and N. M. Odhiambo. 2018. “Human Development Thresholds for Inclusive Mobile Banking in Developing Countries.†African Journal of Science, Technology, Innovation and Development 10 (6): 735–744.

Asongu, S. A., and N. M. Odhiambo. 2019. “How Enhancing Information and Communication Technology Has Affected Inequality in Africa for Sustainable Development: An Empirical Investigation.†Sustainable Development 1: 1–10.

Asongu, S. A., and S. Le Roux. 2017. “Enhancing ICT for Inclusive Human Development in Sub-Saharan Africa.†Technological Forecasting and Social Change 118: 44–54.

Beuermann, D. W., C. McKelvey, and R. Vakis. 2012. “Mobile Phones and Economic Development in Rural Peru.†The Journal of Development Studies 48 (11): 1617–1628.

Cámara, N., and D. Tuesta. 2014. “Measuring Financial Inclusion: A Multidimensional Index.†BBVA Research Paper No. 14/26. https://ssrn.com/abstract = 2634616.

David, O. O. (2019). Nexus between telecommunication infrastructures, economic growth and development in Africa: Panel vector auto regression (P-VAR) analysis. Telecommunications Policy, 43(8), 101816

Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., and Hess, J. 2018. The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution, World Bank.

Drummer, D., Feuerriegel, S., and Neumann, D. 2017. “Crossing the next Frontier: The Role of ICT in Driving the Financialization of Credit,†Journal of Information Technology (32:3), pp. 218–233.

Economic Times (2019). Internet users in India to reach 627 million in 2019, Economic Times, March 2019

EY Global FinTech Adoption Index 2019, Available at https://www.ey.com/en_gl/eyglobal-fintech-adoption-index, accessed on January 09, 2020

FinTech for Inclusion: Challenges and Opportunities, Roundtable discussion organized by Business Today in collaboration with PwC, BT Print Edition: December 16, 2018. Available online at https://www.businesstoday.in/magazine/the-hub/fintech-for-inclusion-challenges-andopportunities/story/294454.html, accessed on January 09, 2020

FinTech in India - Ready for breakout, Report by Deloitte, available at https://www2.deloitte.com/in/en/pages/financial-services/articles/fintech-india-readyfor-breakout.html#, accessed on January 09, 2020

Foster, C., and Heeks, R. 2013. “Innovation and Scaling of ICT for the Bottom-of-the-Pyramid,†Journal of Information Technology (28:4), pp. 296–315.

Friedline, T., Naraharisetti, S., and Weaver, A. 2019. “Digital Redlining: Poor Rural Communities‟ Access to Fintech and Implications for Financial Inclusion,†Journal of Poverty (24:2), Routledge, pp. 168– 192.

Ghosh, S. 2016. “Does Mobile Telephony Spur Growth? Evidence from Indian States.†Telecommunications Policy 40 (10-11): 1020–1031.

Gosavi, A. 2018. “Can Mobile Money Help Firms Mitigate the Problem of Access to Finance in Eastern Sub-Saharan Africa?†Journal of African Business 19 (3): 343–360.

Gozman, D., Liebenau, J., and Mangan, J. 2018. “The Innovation Mechanisms of Fintech Start-Ups: Insights from SWIFT‟s Innotribe Competition,†Journal of Management Information Systems (35:1), Routledge, pp. 145–179. (https://doi.org/10.1080/07421222.2018.1440768).

GPFI. 2016. “G20 High-level Principles for Digital Financial Inclusionâ€. https://www.gpfi.org/sites/gpfi/files/G20%20High%20Level%20Principles%20for%20Digital%20Financial%20Inclusion.pdf

Hermes, N. 2014. “Does Microfinance Affect Income Inequality?†Applied Economics 46 (9): 1021–1034.

Jack, W., and T. Suri. 2011. “Mobile Money: The Economics of M-PESA.†NBER Working Paper Series, No. 16721. https://www.nber.org/papers/w16721.

Kai, H., and S. Hamori. 2009. “Microfinance and Inequality.†Research in Applied Economics 1 (1): 1–12.

KPMG, (2019). Fintech and start ups fueling Indias USD 5 trillion economy. Retrieved on May 12, 2022 from https://assets.kpmg/content/dam/kpmg/in/pdf/2019/11/fintech-start-ups-economy-inclusion.pdf

KPMG, (2021). Pulse of fintech H2`21. Retrieved on May 12, 2022 from https://assets.kpmg/content/dam/kpmg/xx/pdf/2022/02/pulse-of-fintech-h2-21.pdf

Lacalle-Calderon, M., J. M. Larrú, S. R. Garrido, and M. Perez-Trujillo. 2019. “Microfinance and Income Inequality: New Macrolevel Evidence.†Review of Development Economics 23 (2): 860–876

Leonardi, P. M., Bailey, D. E., Diniz, E. H., Sholler, D., and Nardi, B. A. 2016. “Multiplex Appropriation in Complex Systems Implementation: The Case of Brazil‟s Correspondent Banking System,†MIS Quarterly (40:1), pp. 461–473.

Manyika, James; Lund, Susan; Singer, Marc; White, Olivia and Berry Chris; Digital Finance For All: Powering Inclusive Growth in Emerging Economies, McKinsey Global Institute, September 2016

Masiero, S., and Prakash, A. 2019. “ICT in Social Protection Schemes: Deinstitutionalizing Subsidy-Based Welfare Programs,†Information Technology and People (33:4), pp. 1255-1280.

Mbiti, I., and D. N. Weil. 2011. “Mobile Banking: The Impact of M-Pesa in Kenya.†NBER Working Paper Series, No. 17129.

Mookerjee, R., and P. Kalipioni. 2010. “Availability of Financial Services and Income Inequality: The Evidence from Many Countries.†Emerging Markets Review 11 (4): 404–408.

Morawczynski, O. 2009. “Exploring the Usage and Impact of “Transformational†Mobile Financial Services: The Case of M-PESA in Kenya.†Journal of Eastern African Studies 3 (3): 509–525.

Muralidharan, K., P. Niehaus, and S. Sukhtankar. 2014. “Payments Infrastructure and the Performance of Public Programs: Evidence from Biometric Smartcards in India.†National Bureau of Economic Research Working Paper Series, No. 19999. https://www.nber.org/papers/w19999.pdf.

Oborn, E., Barrett, M., Orlikowski, W., and Kim, A. 2019. “Trajectory Dynamics in Innovation: Developing and Transforming a Mobile Money Service across Time and Place,†Organization Science (30:5), pp. 1097–1123.

Ouma, S. A., T. M. Odongo, and M. Were. 2017. “Mobile Financial Services and Financial Inclusion: Is It A Boon For Savings Mobilization?†Review of Development Finance 7 (1): 29–35.

Park, C.-Y., and R. Mercado. 2018. “Financial Inclusion, Poverty, and Income Inequality.†The Singapore Economic Review 63 (1): 185–206.

Peruta, M. D. 2018. “Adoption of Mobile Money and Financial Inclusion: A Macroeconomic Approach through Cluster Analysis.†Economics of Innovation and New Technology 27 (2): 154–173.

Pradhan, R. P., Arvin, M. B., Norman, N. R., & Bele, S. K. (2014). Economic growth and the development of telecommunications infrastructure in the G-20 countries: A panel-VAR approach. Telecommunications Policy, 38(7), 634–649

Ravi, Shamika. “Accelerating Financial Inclusion in India,†Brookings India Report, March 2019

Realini, C., and Mehta, K. 2015. Financial Inclusion at the Bottom of the Pyramid, Victoria, Canada: Friesen Press.

Sarma, M. 2012. “Index of Financial Inclusion - A Measure of Financial Sector Inclusiveness, Competence Centre on Money, Trade, Finance and Development Working Paper No. 07/2012. https://finance-and-trade.htw-berlin.de/fileadmin/HTW/Forschung/Money_Finance_Trade_Development/working_paper_series/wp_07_2012_Sarma_Index-of-Financial-Inclusion.pdf.

Senyo, P. K., and Osabutey, E. L. C. 2020. “Unearthing Antecedents to Financial Inclusion through FinTech Innovations,†Technovation, 102155. Senyo, P. K., Effah, J., and Addae, E. 2016. “Preliminary Insight into Cloud Computing Adoption in a Developing Country,†Journal of Enterprise Information Management (29:4), pp. 505–524.

Senyo, P. K., Liu, K., and Effah, J. 2019. “Digital Business Ecosystem: Literature Review and a Framework for Future Research,†International Journal of Information Management (47), pp. 52–64.

Siddiqui, T. A., & Siddiqui, K. I. (2017b). Determining effect of telecom services on financial inclusion in Haryana using SEM. In M. K. Barua, U. Lenka, K. V. Pandya, & P. N. Sinha (Eds.), International Conference on Research and Business Sustainability (pp. 436–441). New Delhi, Delhi: Excellent Publishing House.

Tchamyou, V. S., G. Erreyger, and D. Cassimon. 2019. “Inequality, ICT and Financial Access in Africa.†Technological Forecasting and Social Change 139: 169–184.

Turégano, D. M., and A. G. Herrero. 2018. “Financial Inclusion, Rather Than Size, is the Key to Tackling Income Inequality.†The Singapore Economic Review 63 (01): 167–184.

World Bank. 2018. “Financial Inclusion on the Rise, But Gaps Remain,†Press Release. (https://www.worldbank.org/en/news/press-release/2018/04/19/financial-inclusion-on-the-risebut-gaps-remain-global-findex-database-shows).

Zhang, X., J. Zhang, and Z. He. 2018. “Is FinTech Inclusive? Evidence from China‟s Household Survey Data.†Paper presented at the 35th IARIW General Conference, Copenhagen, 20–25 August.