Digital Finance: Fintech for Financial Inclusion and Sustainability

Abstract

United Nations Sustainable Development Goals (UN SDGs), provided a framework of detailed objectives  for pursuing sustainable development, adopted by the global community consists of 17 SDGs and 169 targets, to be achieved by 2030. Financial inclusion is at the centre of current global policy attention, driven e.g. by the G20, the World Bank and major development organizations. The Financial Inclusion strategy aims for sustainable financial inclusion by leveraging technology and adopting a multi-stakeholder approach.  The 2016 Principles are envisioned to catalyze country-level actions by G20 governments to drive financial inclusion using digital technologies. From 2010 to 2017, much of the progress was related to the impact of financial technology (FinTech) in a number of countries. 

FinTech companies are uniquely qualified to drive financial inclusion by leveraging their access to technology.  Alliance for Financial Inclusion’s FinTech for Financial Inclusion (FinTech4FI) initiative shows the potential for strategies for digital financial transformation. As of  now Sustainable Finance, Financial Inclusion  and FinTech are now major policy focuses of most national governments and regulators.  80%  of adults in India have access to credit as a result of Fintech  and 350 million people are  gaining access to accounts for the first time. Formal and informal data is becoming available in the form of digital footprints.

Is Fintech with its digital footprints a promising avenue for access of credit or is it discriminating consumers using information generated by big data? Are Disintermediation, Disruption, Digital Finance leads to discrimination of Customers. The power of four pillars in Fintech, a journey  towards Financial inclusion is a question or a  solution  for Sustainable Development Goals ?  In this context, a modest attempt has been made to evaluate the promises and pitfalls of role of Digital finance especially Fintech in Financial inclusion, for pursuing Sustainable Development Goals. Challenges of Fintech as a business model for business to business and business to consumer are deliberated. The lessons to be learnt in designing of digital financial infrastructure for  India are also reflected.

Design/methodology/approach:

Case study method in deliberating on role of Fintech in Financial inclusion, for pursuing Sustainable Development Goals.

Findings/Practical implications:

The study  points out the  of role of Digital Finance in Financial Inclusion in India

The Research paper identifies the pitfalls in  Fintech and challenges of Fintech as a business model for business to business to consumer are deliberated.

Originality/value –A modest attempt on linking digital finance, especially role of Fintech  for pursuing  Sustainable Development goals  are made.