Role of Digital Banking and Fintech in Enhancing Financial Inclusion

Abstract Digital banking and FinTech have emerged as crucial mechanisms to support financial inclusion by minimising the transactional, geographical and infrastructural barriers to conventional financial services. This paper investigates the contribution of digital banking and financial technology to enhance financial accessibility, service quality and affordability while recognising the vital factors that support financial inclusion. This study has drawn on a literature review and theoretical interpretation to demonstrate the contribution of digital banking and FinTech to exclusive financial inclusion. This paper adopted an interpretivist philosophy, exploratory design, and deductive approach to synthesise the peer-reviewed secondary evidence that was published recently. The methodological stance supported comparing and contrasting recurring themes in the existing literature. The findings of the study highlight the capacity of FinTech to increase financial inclusion; however, barriers like poor connectivity, lack of digital literacy, use of trust and regulatory complexities are restricting the financial inclusion. Overall, digital banking services and FinTech, including a suitable regulatory framework, can strengthen financial inclusion.