Technological Innovations and Their Impact on Financial Inclusion

The expansion of the economy and the defeat of poverty depend on financial inclusion, or the ability of people and enterprises to access and use financial services. However, a substantial percentage of the global population is still unbanked, lacking in access to basic financial services such as savings accounts, loans, and remittances. Technology is an effective medium for bridging the gap between the unbanked and the established financial system, especially in the form of fintech advances. This chapter examines the diverse ways that digital wallets, mobile money, internet banking, microfinance, and blockchain technologies are enabling the unbanked. It also covers the prospects and obstacles that need to be overcome to achieve universal financial inclusion. The chapter concludes by emphasizing the necessity of collaboration among governments, financial institutions, fintech businesses, and nonprofit groups in ensuring that the advantages of technology reach all parts of society.