Financial Inclusion via FinTech

Abstract

We study household finance in the age of FinTech, where digital payments are integrated with various financial services through all-in-one superapps. We hypothesize that increased FinTech adoption via digital payments can help break down households’ participation barriers, particularly the psychological ones, ultimately leading to higher participation in the financial market. Financial Technology (FinTech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smart phones and mobile devices. Fintech, the word, is a combination of "financial technology". The paper attempts to examine the phenomenal role of FinTech in filling the wide gap of Financial Inclusion, the need for its reorientation towards poorest of the poor and the road ahead in the light of multiple challenges that it faces andtech poses to the traditional players.