Unravelling Fin-Tech Influence on Financial Penetration: The Global Assessment

Abstract

Financial inclusion is one of the major goals of the IMF and World Bank. Several empirical studies have shown the merits of promoting the financial sector in the economy. It engenders heightened economic growth, facilitates capital mobilization, and fosters a conducive environment for innovation and entrepreneurship within the financial domain. This research delves into the nexus between financial technology (fin-tech) adoption by the financial system and commercial banking sector penetration globally. Panel data analysis has been conducted while controlling for inclusive financial penetration, exchange rate, bank lending rate, and institutional quality. The focal point revolves around unravelling the contribution of fin-tech in the commercial banking landscape. The anticipated contribution lies in providing nuanced insights into the transformative impact of technological advancements on the financial viability of commercial banks.