FinTech And Financial Inclusion in the 2030 Agenda for Sustainable Development: A Global Vision

Abstract

http://doi.org/10.5281/zenodo.4294851

Financial Technology (FinTech) is a term used to describe new technologies that seeks to improve and automate the distribution and use of financial services. The purpose of FinTech companies is to help traditional companies, entrepreneurs and consumers manage financial processes and operations more efficiently; using algorithms and specialized software to achieve this goal. Since these services are more accessible, affordable and present lower barrier to contracting them, this sector claims its consumers find an adequate offer to their needs, particularly if they don’t fulfill the requirements that banks, and traditional credit grantors usually request. Therefore, it is argued that FinTechs contribute greatly to financial inclusion in the markets where they operate; especially in developing countries. Advances in FinTech, such as digital transactions, person-to-person lending, MSMEs credit and crowdfunding are implementing a common effort to achieve this ideal of inclusion. Consequently, this document explores the evolution of the study of this sector and the elaboration of a pertinent analysis of its background and inherent relationship with financial inclusion, in order to obtain a better understanding of the industry, the future of finance and new banking. The results suggest that, although technological development gives a great boost to the sector, it is also facing new challenges arising from its continuous development.