Does fintech affect financial inclusion in Balkan region countries?

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Abstract

In recent years, the technological revolution and proliferation of financial technology (fintech) have significantly transformed the financial services landscape, potentially addressing gaps in financial inclusion. Fintech is the key driver for financial inclusion (Arner et al., 2020). The purpose of this study is to investigate the effect of fintech on financial inclusion within the Balkan region countries. This research uses a comprehensive analysis of data from different Balkan countries to explore the impact of fintech on financial inclusion. The study uses various econometric models and regression analysis (fixed effects model) to assess the extent to which fintech affects access to banking services, credit availability, and overall financial inclusion within the Balkan region. Using fintech indicators and available global fintech data, we find that the proxy of fintech-digital payment has a positive correlation with financial inclusion in countries of the Balkan region. Findings from this research contribute valuable knowledge to policymakers, financial institutions, and researchers interested in promoting inclusive financial systems in the Balkan region through the strategic integration of fintech solutions.

Keywords: Fintech, Banks, Artificial Intelligence, Digital Payment, Financial Inclusion

Authors’ individual contribution: Conceptualization — F.M. and L.S.; Methodology — F.M. and M.H.; Formal Analysis — F.M.; Investigation — L.S. and M.H.; Writing — L.S.

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

JEL Classification: C33, G20, G31, O33

Received: 01.06.2023
Accepted: 07.03.2024
Published online: 11.03.2024

How to cite this paper: Miftari, F., Shabani, L., & Hashani, M. (2024). Does fintech affect financial inclusion in Balkan region countries? [Special issue]. Journal of Governance & Regulation, 13(1), 388–395. https://doi.org/10.22495/jgrv13i1siart12