The role of Fintech in promoting financial inclusion

Purpose This study aims to examine the effects of digital payments and credit on financial inclusion in Asian countries. Design/methodology/approach The hypotheses are tested using the benchmark regression, a multidimensional fixed effects model for robustness testing and the IV method to address endogeneity problems in panel data from 2014 to 2021. Findings The findings demonstrate that Fintech has a positive impact on financial inclusion by enhancing cost efficiency and saving time for users. Furthermore, the study highlights that financial inclusion is further supported by the interaction between digital lending and Internet usage, as well as the combined effects of mobile money usage and education levels. Originality/value This study expands existing research by examining the role of Fintech in promoting financial inclusion through two aspects – mobile money and digital credit – addressing gaps in previous studies that focused solely on mobile money. It also provides new insights by incorporating interaction variables related to digital literacy and Fintech usage.