FinTech Innovations and Financial Inclusion: Digital Credit, Micro-Lending, and Poverty Alleviation

Abstract

This research explored the transformative impact of FinTech innovations on financial inclusion, focusing on the roles of digital credit, micro-lending, and their contributions to poverty alleviation in developing economies. Employing a mixed-methods research design that integrated survey data and participant interviews, the study analyzed how technology-driven financial services enhanced accessibility, affordability, and equity among financially marginalized populations. The findings indicated that FinTech significantly reduced barriers to credit access through mobile-based lending platforms and algorithmic credit scoring, thereby improving economic resilience, entrepreneurial growth, and household income. However, the study also revealed disparities in adoption, with women, rural residents, and individuals with limited digital literacy facing greater challenges. The analysis emphasized that while FinTech served as a catalyst for inclusion, its success depended on strong regulatory oversight, consumer protection, and digital financial education. Qualitative insights further highlighted users’ perceptions of increased autonomy, trust, and empowerment through digital finance. The study concluded that FinTech holds substantial potential for inclusive growth but requires careful alignment with social, institutional, and ethical frameworks. Recommendations included expanding digital infrastructure, strengthening financial literacy, and ensuring equitable algorithmic governance to enhance sustainability and social justice in financial ecosystems.

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