Fintech Driven Financial Inclusion and Digitalization: Insights From Indonesia’s Emerging Market (2020–2025)
DOI:
https://doi.org/10.59971/jumawa.v2i4.383Keywords:
financial technology, financial inclusion, digitalization of financial servicesAbstract
This study conducts a systematic analysis of the role of financial technology (fintech) in promoting financial inclusion and the digitalization of financial services during the period 2020–2025. The method used is a comprehensive literature review, examining various academic publications, industry reports, and policy documents related to fintech. The findings indicate that fintech has significantly expanded access to financial services for unbanked groups and MSMEs through digital product innovations, while also enhancing the efficiency and transparency of financial services. The novelty of this research lies in presenting an up-to-date literature review that integrates aspects of financial inclusion with service digitalization, as well as identifying gaps in the literature related to inclusive approaches and adaptive regulations, which have been rarely explored before. The study provides a major contribution in the form of a holistic analytical framework that combines technological innovation, socioeconomic impacts, and implementation challenges in emerging markets, particularly Indonesia. However, challenges such as low financial and digital literacy, infrastructure inequality, and the need for adaptive regulations remain key obstacles. The study recommends strengthening literacy and building an inclusive digital ecosystem as strategic steps to optimize the contribution of fintech to sustainable financial development. These findings offer scientific contributions to the development of digital financial policies and practices in Indonesia and other developing countries.
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