FinTech Use in improving Financial Inclusion and Banking Performance

Abstract

Financial Technology (FinTech) has made a primal position as an initiator of innovations in the banking and financial services market. FinTech can both increase financial inclusion and make banking services available to previously unbanked groups of people through the use of digital resource platforms, mobile applications, blockchain, and artificial intelligence. Simultaneously, the adoption of FinTech can also help improve the work of banking, making it more effective, cheaper, and entertaining to the clients. Despite these advantages, the introduction of FinTech into the conventional banking system is linked to such problems as cybersecurity risks, regulations compliance, and insufficiently developed technological infrastructure. In this paper, the author will explain the potential of using FinTech to increase financial inclusion and optimize the performance of the banks, particularly in the emerging market. The analysis illustrates how the FinTech solutions can address the financial access gap, smooth performance of the operations and influence the overall performance of the banking operations in the environment of reducing the risks it poses.