Testing the role of Fintech in enhancing financial inclusion: a comparative analysis by groups of countries

In this study, we investigate the relationship between Fintech and financial inclusion. The empirical analysis consists of panel data regressions on 111 countries and a k-means cluster of 28 European countries. The data cover the period from 2011 to 2021. The results show that digital payments are positively associated with financial inclusion. However, mobile-phone payments have heterogeneous effects on financial inclusion by complementing or partially substituting traditional banking depending on economic development. Overall, the study highlights the importance of institutional and economic context to the relationship between Fintech and financial inclusion and underlines the need for differentiated policies across countries.