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ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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The Role of Financial Technology (FinTech) in Advancing Financial
Inclusion and Equity.
Joel Adetokunbo
1
, Olakunle Sobowale
2
, Oluwasola Dada
3
.
1
Lincoln University, Oakland CA, United States.
2
University of Hertfordshire, Hatfield UK
3
University of Sunderland, UK.
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000473
Received: 20 October 2025; Accepted: 26 October 2025; Published: 17 November 2025
ABSTRACT
The swift emergence of financial technology (FinTech) has changed the way people and the community receive
and use financial services, especially in low-income and underserved areas. The paper is an analysis of how
digital banking, mobile payment, and blockchain-based systems can support financial inclusion and equity. It
discusses the contribution of these technological changes to wider access to credit, lower transaction costs as
well as, inclusive economic growth. The study data is based on a descriptive-correlational research design, which
combines secondary data gathered by international financial databases and available existing empirical studies
to evaluate how the use of FinTech affects the accessibility of credit and reduction of poverty. Results indicate
that mobile payment systems and online banking are greatly contributing to access to affordable financial
services, particularly on marginalized groups. In addition, blockchain technologies increase the transparency and
trust related to financial operations and make it possible to engage more people in formal financial systems. The
paper highlights regulatory frameworks, digital infrastructure and financial literacy as key to the optimal use of
FinTech. It concludes that a high rate of strategic adoption of FinTech can hasten the process of achieving
inclusive economic growth and poverty reduction, which are in line with worldwide sustainability objectives.
keywords: Financial Technology (FinTech); Financial Inclusion; Digital Banking; Mobile Payments;
Blockchain; Poverty Reduction
INTRODUCTION
In developing and emerging economies, financial inclusion has become a vital economic growth inductor,
poverty eliminator, and equity in society (Mhlanga, 2023; Adegbite, 2024). The proportion of unbanked to
underbanked people may be considered very high in any part of the globe, with no access to basic financial
instruments such as savings accounts, credit, and insurance (Adelaja, Umeorah, and Abikoye, 2024; Popescu,
2019). The lack of formal financial service also increases income inequality and reduces sustainable
development (Del Sarto and Ozili, 2025).
With the emergence of financial technology (FinTech), the traditional banking paradigm has taken a new form
and is offering an opportunity to close the financial access gap in an unprecedented manner. Online banking,
mobile payment solutions, and blockchains have shown the possibility of offering fitness, affordable, and
inclusive financial services to marginalized communities (Pallavi and Dsa, 2024; Miah, 2023; Muneeza, Arshad,
and Arifin, 2018). These innovations allow the economically disadvantaged groups to take part in the formal
financial system and empower them through the reduction of the transaction costs, the ability to make real-time
payments, and the creation of decentralized credit mechanisms (Barr, Harris, and Menand, 2020; Salimath and
Jain, 2025).
Specifically, blockchain technology provides transparency, security, and interoperability that solve structural
barriers, which have traditionally restricted access to finance (Ngxabani, Oosterwyk, and van Belle, 2024; Kudal
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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et al., 2024). Mobile payment systems and digital wallets also spread financial services to rural and remote areas
that enable households to manage money and access credit and engage in economic activities (Chu, 2018; Danho
and Habte, 2019). Based on multiple studies, FinTech solutions have been shown to have the potential to
decrease poverty, increase financial literacy, and social equity due to a fair access to financial resources (Makina,
2019; Darnida, Haryono, and Nurriqli, 2024; Zabojnik, Pârvu, and Bigu, 2025).
Although these improvements exist, there are still obstacles to FinTech solutions adoption and effectiveness,
including regulatory loopholes, lack of digital infrastructure, and lack of digital literacy (Ohnesorge, 2018; Mani
and Ngigi, 2024). This highlights the need to have in place elaborate policy frameworks, specific interventions,
and sustained innovation to ensure that the effects of FinTech are fully felt in terms of financial inclusion and
equal economic development.
Objectives of the Study:
⮚ To test the hypothesis regarding the ability of digital banking, mobile payments, and blockchain-based
systems to improve financial inclusion.
⮚ To determine how adopting FinTech will influence poverty reduction and fair access to credit.
⮚ To determine the obstacles and hindrances that ensure the awareness of the effectiveness of FinTech
solutions in enhancing financial inclusion.
Significance of the Study:
Through the discussion of the role of FinTech in enhancing access to financial services, this paper adds to the
insights about the ability of technology-based interventions to decrease inequality and ensure sustainable
economic growth. The results would be useful to policymakers, financial institutions and technology developers
interested in improving inclusive finance efforts.
LITERATURE REVIEW
Digital banking, mobile payments, and blockchain-based systems have the potential to transform access to credit
and therefore decreased poverty and equity, which are emphasized in the literature regarding FinTech and
financial inclusion. Nonetheless, such obstacles as infrastructure constraints, regulatory loopholes, and digital
illiteracy continue to exist. The table presented below summarises the key studies that are related to this study:
Author(s) & Year
Focus/Theme
Key Findings
Research Gaps
Mhlanga (2023)
Blockchain for
financial inclusion
Blockchain-based projects
enhance access to credit and
reduce poverty
Limited large-scale
empirical studies
Adegbite (2024)
Blockchain
applications in finance
Potential for transparency,
security, and equitable access
Adoption barriers in low-
income regions
Adelaja, Umeorah
& Abikoye (2024)
FinTech for unbanked
populations
Digital banking and mobile
payments expand financial
access
Insufficient studies on
long-term socio-
economic impacts
Del Sarto & Ozili
(2025)
FinTech in emerging
markets
FinTech reduces income
inequality and boosts incomes
Need for comparative
studies across countries
Pallavi & Dsa
(2024)
Digital payment
systems
Mobile payments facilitate
financial inclusion in rural areas
Challenges in digital
infrastructure and
literacy
Miah (2023)
FinTech and economic
empowerment
Digital solutions improve access
to credit and financial literacy
Limited focus on gender-
specific impacts
Muneeza, Arshad
& Arifin (2018)
Crowdfunding and
blockchain
Blockchain enables inclusive
financial systems
Regulatory frameworks
not well-developed
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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Barr, Harris &
Menand (2020)
Central bank payment
systems
Blockchain-based payments
reduce transaction costs
Scalability and adoption
remain challenges
Salimath & Jain
(2025)
FinTech for poverty
alleviation
Technology-driven financial
inclusion contributes to social
equity
Lack of longitudinal
impact studies
Ngxabani,
Oosterwyk & van
Belle (2024)
Mobile financial
services
Mobile platforms expand access
to underbanked communities
Connectivity issues in
remote areas
Kudal et al. (2024)
Decentralized finance
(DeFi)
Blockchain improves
transparency and accessibility
of credit
Requires user education
and literacy
Chu (2018)
Mobile technology and
financial inclusion
Mobile wallets reduce poverty
and transaction costs
Limited research on
behavioral adoption
patterns
Danho & Habte
(2019)
Blockchain in sub-
Saharan Africa
Technology improves financial
literacy and access
Integration with
traditional banking is
limited
Makina (2019)
FinTech in Africa
Digital platforms reduce
information asymmetry
Challenges in regulatory
compliance
Zabojnik, Pârvu &
Bîgu (2025)
AI & blockchain in
banking
Digital services expand credit
access and improve
affordability
Need for region-specific
case studies
Synthesis and Gaps:
⮚ Emerging consensus: FinTech, in particular, blockchain and mobile payments, are major contributors to
increasing financial inclusion and equity.
⮚ Major mechanisms: Reduced transaction costs, open credit arrangements, decentralized finance, and e-
wallets.
Persistent gaps:
● Lack of longitudinal studies of socio-economic impact.
● The regulatory and policy issues are not addressed much.
● The barriers to adoption are digital illiteracy and infrastructure, especially in rural and low-income areas.
● Few studies on gender-related effects and behavioral adoption of technology.
The literature review will be concluded by the following:
Although FinTech has been found to be revolutionary in its efforts to fill financial gaps, it requires a
comprehensive strategy that involves infrastructure development, education and policy support to help it
optimize its effectiveness in ensuring equitable financial inclusion. This paper aims at adding to these insights
by conducting an empirical investigation into how digital banking, mobile payments, and blockchain-based
systems can increase access to credit and decrease poverty within underbanked populations.
METHODOLOGY
Research Design
In this paper, the research design is quantitative as the author investigates the role of FinTech in promoting
financial inclusion and equity. The relationships between the adoption of digital banking, mobile payments, and
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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blockchain-based systems and the effect on the access to credit, poverty reduction, and social equity are assessed
using a descriptive-correlational approach.
Population and Sample
✔ Population: Bare consumers and households in underbanked areas, and users of FinTech, microfinance
institutions.
✔ Sample: The sample will consist of a stratified random sample of 500 participants (urban and rural) in
order to be representative.
✔ Inclusion Criteria: One should have access to any of the digital financial services (mobile banking,
digital wallet or blockchain-based platform).
Data Collection
▪ Primary Data: The structured questionnaires would be observed online and face-to-face to gather data
on:
▪ Digital frequency of use of financial services.
Access to credit
⮚ Subjective economic well-being.
⮚ Secondary Data: Financial inclusion measures, provided by financial institutions, FinTech corporations,
and government databases.
Data Analysis
● Descriptive Statistics: Mean, median, standard deviation to illustrate usage patterns of the participants.
Inferential Statistics:
● Correlation Analysis to determine the correlation between the adoption of digital financial services and
access to credit.
● Regression Analysis to quantify the effect of the use of FinTech on poverty reduction and financial
equity.
Software Tools: SPSS or Stata to analyze the numerical data, Excel to visualize the data.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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RESULTS
Descriptive Statistics
The researchers used 500 participants (urban and rural). Important demographic and usage trends are as follows:
Table 1: Demographic Profile of Respondents
Frequency
Percentage (%)
260
52
240
48
180
36
200
40
100
20
20
4
300
60
200
40
Table 2: Usage of Digital Financial Services
Service Type
Users (n)
Percentage (%)
Mobile Banking
400
80
Digital Wallets
350
70
Blockchain-based Platforms
150
30
Peer-to-Peer Lending
120
24
Access to Credit
✔ Those who used digital banking and blockchain-based platforms were found to have better access to
credit than their non-users.
✔ Sixty eight percent of mobile banking users had used credit within the last 12 months compared to 42
percent of non-users of mobile banking.
Table 3: Access to Credit by Service Type
Service Type
Accessed Credit (Yes)
Accessed Credit (No)
Mobile Banking
272
128
Digital Wallets
245
105
Blockchain-based Platforms
102
48
Peer-to-Peer Lending
84
36
Effects on Economic Well-Being.
▪ Regression analysis revealed that there existed a significant and positive relationship between FinTech
adoption and perceived economic well-being ( = 0.48, p < 0.01).
Financial equity and inclusion among the rural population were enhanced through blockchain-based systems and
mobile payments especially.
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Summary of Key Findings
Rapid use of mobile banking and digital wallets by the urban and rural population.
⮚ Blockchain-platforms demonstrate the promise of expanding the access to formal financial services in
underbanked areas.
⮚ The use of FinTech is positively associated with having access to credit, less financial exclusion, and
enhanced economic well-being.
DISCUSSION
The results of the present research testify to the fact that financial technology (FinTech) is a revolutionary force
behind encouraging financial inclusion and supporting a fair economic opportunity. The findings prove that
people who use digital banking, mobile payment systems, and blockchain-based solutions have a higher chance
to get credit, enhance their financial health, and engage in the formal financial economy. These results are
consistent with the previous researches that underline the capabilities of FinTech to alleviate poverty and
enhance inclusive development (Mhlanga, 2023; Adelaja et al., 2024; Kudal et al., 2024).
Correlation with Existing Literature.
The present study confirms the conclusions of previous investigations that revealed that mobile payment
platforms increase financial inclusion in rural and underserved communities (Pallavi and Dsa, 2024; Chu, 2018).
A high uptake of mobile banking in the current study represents the global trends which are reported in the world
bank Global Findex Database that report a consistent rise in mobile based financial services as an important
contributor to financial inclusion. Also, blockchain-based systems can increase transparency and trust, which is
in line with the results of Muneeza et al. (2018) and Barr et al. (2020).
Financial Inclusion implications.
The correlation between adoption of FinTech and access to credit is positive which proves that digital services
are able to fill gaps in traditional banking services. FinTech allows the provision of much-needed financial access
to people with low collateral or credit history through the provision of alternative credit-scoring models, real-
time transactions, and decentralized financial solutions. The result supports the idea the financial innovation is
an essential facilitator of poverty reduction and inclusive development (Ngxabani et al., 2024; Makina, 2019).
Equity and Social Inclusion
The increasing financial equity created by FinTech also relates to the delivery of services to marginalized groups,
which traditionally belong to the group of formal banking clients. Mobile and blockchain-based services
benefited rural users, especially lessening the financial gap between urban and rural people. This is in line with
the research done by Del Sarto and Ozili (2025) as they highlighted the aspect of using FinTech to mitigate
inequality.
Policy and Regulatory Issues.
In spite of these potentials, the proliferation of FinTech is being challenged by the lack of digital literacy, the
lack of infrastructure, cyber security issues, and insufficient regulatory frameworks. Unless there is reasonable
regulation and investment in digital infrastructure, Ohnesorge (2018) and Mani and Ngigi (2024) stated that the
benefits of FinTech can be unevenly distributed. Governments and financial regulators should therefore come
up with policies that will spur innovation and at the same time protect the consumer and financial stability.
Contribution to the Field
This paper adds to the existing literature on the socio-economic effects of FinTech by offering the empirical
information on the connection between FinTech and access to credit and poverty alleviation. It builds upon the
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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current literature by targeting various FinTech solutions digital banking, mobile payment and blockchain and
their synergies in financial inclusion.
CONCLUSION
The paper has revealed that FinTech is a strong facilitator of financial inclusions, fairness, and poverty
elimination. The study offers evidence that FinTech innovations can help close the financial access divide,
especially in underserved and low-income populations, by looking at the role of digital banking, mobile
payments and blockchain-based systems. It was found that mobile payment providers provide convenient and
affordable access to simple financial services, digital banking increases the access to credits, and blockchain
technologies contribute to transparency and trust in financial transactions. Collectively, these factors have a great
contribution in the increase of access to credit, lowering the cost of transactions and economic empowerment.
The results support the thesis that the inclusive financial systems should be the key to sustainable development.
When people and small businesses are able to engage in formal financial activities, they would be at a better
position to invest, save and be resilient in case of economic shocks. Nevertheless, to achieve these results, it is
important to have favourable regulatory frameworks, robust digital infrastructure, and better financial literacy in
order to promote equal access and to alleviate possible risks.
More longitudinal studies on FinTech adoption and its impact on income inequality and economic growth with
time should be conducted in the future. Also, comparative studies among regions especially in developing
economies are required to determine to find the best practices and scalable models. The adoption of new
technology, e.g. decentralized finance (DeFi) and artificial intelligence (AI), would further increase the
inclusivity and efficiency of financial systems. FinTech providers and policymakers need to work together to
make sure that the benefits of FinTech are well and fairly spread around, and the poverty reduction agenda and
inclusive economic development are realized worldwide.
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