Purpose The emergence of digital technologies and internet connectivity in the financial services sector has paved the way for fintech offerings and innovative financial solutions. However, there remains an opportunity to deepen our understanding of how digital technology influences fintech access and the processing of customer information for credit risk assessments. Thus, this study seeks to further explore how the adoption of these technologies mitigates information asymmetry to empower financial service providers and lenders to effectively extend credit to individuals and small and medium-sized enterprises. By addressing this gap, we can foster greater financial accessibility and inclusion for diverse communities. Design/methodology/approach The researcher conducted a systematic review to explore and inductively explain digital technology in fintech access and in the processing of customer information for credit risk evaluation, using signalling theory as a framework. Findings The review develops a framework that highlights the role of digital technology in mitigating information asymmetry, facilitating the processing of necessary information for credit risk evaluation, and credit access for individuals and SMEs. The findings indicate that the synaptic signalling of borrowers’ financial and demographic records for credit risk evaluation, as well as the acquisition of continuous synaptic financial signals and the specificity of these signals for credit risk evaluation, are responsible for processing information required for credit risk assessment. Originality/value This exploratory study highlights the innovative ways in which digital technology fosters the emergence of synaptic financial signalling, which is responsible for reshaping the credit market and promoting financial inclusion.
Emmanuel Okoro Ajah (Fri,) studied this question.