A review of literature on the impact of fintech firms on the banking industry.

Abstract

There has been a lot of study in recent years on how digital finance and fintech affect those who lack access to traditional banking services. Digital finance and fintech have the potential to increase financial inclusion in developing countries by making new financial services like mobile money, digital credit, and mobile savings accounts more widely available. This is according to a study by the Consultative Group to Assist the Poor (CGAP). World Bank (2017) research indicated that in Sub-Saharan Africa, where just 34% of individuals have access to a formal bank account, mobile money services have expanded financial inclusion. While digital banking and fintech hold great promise for expanding access to financial services for underserved populations, they also pose serious threats in the form of, for example, cybercrime, inadequate regulation, and bias against women (IFC, 2018). In this literature study, we'll look at how digital banking and fintech have affected financial inclusion, with an eye toward the pros and cons of these innovations for traditionally underrepresented groups like women and people in developing countries. Insights and implications for policymakers, fintech firms, and other players in the financial sector will be highlighted in the study after a thorough examination of the available literature.