Bridging financial gaps: How FinTech drives global financial literacy and development under currency exposure constraints

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study examines the impact of financial technology (FinTech) on financial literacy (FinLit) and financial development (FinDev) across 119 countries, using data from the Global Financial Inclusion Database (Findex) for 2014, 2017, and 2021. The findings reveal a positive relationship between FinTech adoption and FinLit, particularly when measured through digital payments made and received. This aligns with G20 High-Level Principle 6, which emphasizes the role of FinTech in enhancing FinLit and accessibility. Furthermore, the study explores the impact of FinTech on FinDev, demonstrating a significant positive effect of digital payment adoption on FinDev across all regions. However, the results indicate that currency exposure negatively moderates the FinTech-FinDev relationship, suggesting that economies with higher exchange rate volatility may experience weaker FinTech-driven FinDev outcomes. These findings provide valuable insights for policymakers and financial institutions, highlighting the interconnectedness of FinTech, FinLit, currency exposure, and FinDev.

Keywords: Financial Technology, Financial Literacy, Financial Development, Currency Exposure, Global Findex

Authors’ individual contribution: Conceptualization — A.A.W.; Methodology — A.A.W. and P.-S.L.; Formal Analysis — A.A.W.; Writing — Original Draft — A.A.W.; Writing — Review & Editing — A.A.W. and S.A.B.; Project Administration — A.A.W., S.A.B., and P.-S.L.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F31, G21, G23, G53

Received: 02.06.2025
Revised: 06.09.2025; 17.10.2025
Accepted: 30.10.2025
Published online: 03.11.2025

How to cite this paper: A. Wahab, A., Bohari, S. A., & Ling, P.-S. (2025). Bridging financial gaps: How FinTech drives global financial literacy and development under currency exposure constraints. Risk Governance and Control: Financial Markets & Institutions, 15(4), 65–75. https://doi.org/10.22495/rgcv15i4p6