FinTech and Financial Capability, What Do We Know and What We Do Not Know : A Scoping Review

Authors

  •   David Joseph Research Scholar, Department of Commerce, School of Commerce, Finance and Accountancy, Christ (Deemed to be) University, Hosur Road, Bengaluru - 560 029, Karnataka
  •   Girish S. Associate Professor and Research Guide, Department of Commerce, School of Commerce, Finance and Accountancy, CHRIST (Deemed to be) University, Hosur Road, Bengaluru - 560 029, Karnataka
  •   Suresh G. Associate Professor, Symbiosis Institute of Business Management Bengaluru , Bengaluru - 560 100, Karnataka

DOI:

https://doi.org/10.17010/ijf/2023/v17i12/170910

Keywords:

FinTech

, Financial Capability, Financial Inclusion, Financial Behavior, Scoping Review.

JEL Classification Codes

, G53, O33

Paper Submission Date

, October 25, 2022, Paper sent back for Revision, June 14, 2023, Paper Acceptance Date, July 15, Paper Published Online, December 15, 2023

Abstract

Purpose : The scoping review of this study was to investigate the existing literature on FinTech's impact on financial competence and draw conclusions from it. We applied Danielle Levac's recommendations and used the scoping review framework developed by Arksey and O'Malley.

Design/Methodology/Approach : The study involved identifying and analyzing 246 papers from major databases, followed by a rigorous screening process to select 54 relevant studies. Data coding, inclusion, and exclusion screening were conducted by us independently.

Findings : According to the findings, studies on FinTech and financial capacity started in 2012, and since 2020, the number of studies has sharply increased. The analysis showed that financial inclusion was the primary focus of the major FinTech studies, suggesting possible research gaps in other aspects of financial competence. We suggested recommendations and prospective directions for further research in this developing subject based on these findings.

Managerial Implications : This knowledge will help managers find opportunities for collaboration, offer fresh perspectives, and make wise choices, which will improve the sector.

Theoretical Implications : Important concepts and relationships were found, new trends were highlighted, and theoretical advancements were suggested as a result of the inquiry. Through the filling of knowledge gaps, the study would guide future theoretical development, facilitate diverse perspectives, and support the construction of robust frameworks in the FinTech and financial capabilities sector.

Originality/Value : This study offered a comprehensive review of the body of literature, pointing out areas in need of more research and knowledge gaps. The review's unique perspective for future study and innovation in understanding the relationship between FinTech and financial capacity is derived from its thorough synthesis of many studies.

Downloads

Download data is not yet available.

Downloads

Published

2023-12-01

How to Cite

Joseph, D., S., G., & G., S. (2023). FinTech and Financial Capability, What Do We Know and What We Do Not Know : A Scoping Review. Indian Journal of Finance, 17(12), 40–55. https://doi.org/10.17010/ijf/2023/v17i12/170910

Issue

Volume 17, Issue 12, December 2023

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

References

Agwu, M. E. (2021). Can technology bridge the gap between rural development and financial inclusions? Technology Analysis & Strategic Management, 33(2), 122–133. https://doi.org/10.1080/09537325.2020.1795111

Ahmad, A. H., Green, C., & Jiang, F. (2020). Mobile money, financial inclusion and development: A review with reference to African experience. Journal of Economic Surveys, 34(4), 753–792. https://doi.org/10.1111/joes.12372

Andreou, P. C., & Anyfantaki, S. (2021). Financial literacy and its influence on internet banking behavior. European Management Journal, 39(5), 658–674. https://doi.org/10.1016/j.emj.2020.12.001

Arksey, H., & O'Malley, L. (2005). Scoping studies: Towards a methodological framework. International Journal of Social Research Methodology, 8(1), 19–32. https://doi.org/10.1080/1364557032000119616

Arner, D. W., Buckley, R. P., Zetzsche, D. A., & Veidt, R. (2020). Sustainability, finTech and financial inclusion. European Business Organization Law Review, 21(1), 7–35. https://doi.org/10.1007/s40804-020-00183-y

Asongu, S. A., Biekpe, N., & Cassimon, D. (2021). On the diffusion of mobile phone innovations for financial inclusion. Technology in Society, 65, 101542. https://doi.org/10.1016/j.techsoc.2021.101542

Aziz, A., & Naima, U. (2021). Rethinking digital financial inclusion: Evidence from Bangladesh. Technology in Society, 64, 101509. https://doi.org/10.1016/j.techsoc.2020.101509

Banna, H., Hassan, M. K., Ahmad, R., & Alam, M. R. (2022). Islamic banking stability amidst the COVID-19 pandemic: The role of digital financial inclusion. International Journal of Islamic and Middle Eastern Finance and Management, 15(2), 310–330. https://doi.org/10.1108/imefm-08-2020-0389

Bhattacharya, A., & Chopra, A. (2019). Peer-to-peer lending: Bridging the financial inclusion gap by leveraging technology. Indian Journal of Finance, 13(11), 7–23. https://doi.org/10.17010/ijf/2019/v13i11/148413

Bunnell, L., Osei-Bryson, K.-M., & Yoon, V. Y. (2020). FinPathlight: Framework for an multiagent recommender system designed to increase consumer financial capability. Decision Support Systems, 134, 113306. https://doi.org/10.1016/j.dss.2020.113306

Bunnell, L., Osei-Bryson, K.-M., & Yoon, V. Y. (2021). Development of a consumer financial goals ontology for use with FinTech applications for improving financial capability. Expert Systems with Applications, 165, 113843. https://doi.org/10.1016/j.eswa.2020.113843

Candra Sari, R., Rika Fatimah, P. L., Ilyana, S., & Dwi Hermawan, H. (2022). Augmented reality (AR)-based Sharia financial literacy system (AR-SFLS): A new approach to virtual Sharia financial socialization for young learners. International Journal of Islamic and Middle Eastern Finance and Management, 15(1), 48–65. https://doi.org/10.1108/imefm-11-2019-0484

Chatterjee, A. (2020). Financial inclusion, information and communication technology diffusion, and economic growth: A panel data analysis. Information Technology for Development, 26(3), 607–635. https://doi.org/10.1080/02681102.2020.1734770

Chopra, M., & Saldi, R. (2022). Investment in Bitcoin: A delusion or diligence? Indian Journal of Finance, 16(7), 8–22. https://doi.org/10.17010/ijf/2022/v16i7/170632

Daudt, H. M., van Mossel, C., & Scott, S. J. (2013). Enhancing the scoping study methodology: A large, inter-professional team's experience with Arksey and O'Malley's framework. BMC Medical Research Methodology, 13(1), Article 48. https://doi.org/10.1186/1471-2288-13-48

Della Peruta, M. (2018). Adoption of mobile money and financial inclusion: A macroeconomic approach through cluster analysis. Economics of Innovation and New Technology, 27(2), 154–173. https://doi.org/10.1080/10438599.2017.1322234

Demir, A., Pesqué-Cela, V., Altunbas, Y., & Murinde, V. (2022). Fintech, financial inclusion and income inequality: A quantile regression approach. The European Journal of Finance, 28(1), 86–107. https://doi.org/10.1080/1351847x.2020.1772335

Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2017: Measuring financial inclusion and opportunities to expand access to and use of financial services. The World Bank Economic Review, 34(Supplement_1), S2–S8. https://doi.org/10.1093/wber/lhz013

Emara, N., & Zhang, Y. (2021). The non-linear impact of digitization on remittances inflow: Evidence from the BRICS. Telecommunications Policy, 45(4), 102112. https://doi.org/10.1016/j.telpol.2021.102112

Farida, M. N., Soesatyo, Y., & Aji, T. S. (2021). Influence of financial literacy and use of financial technology on financial satisfaction through financial behavior. International Journal of Education & Literacy Studies, 9(1), 86–95. https://doi.org/10.7575/aiac.ijels.v.9n.1p.86

Fernandes, C., Borges, M. R., & Caiado, J. (2021). The contribution of digital financial services to financial inclusion in Mozambique: An ARDL model approach. Applied Economics, 53(3), 400–409. https://doi.org/10.1080/00036846.2020.1808177

French, D., McKillop, D., & Stewart, E. (2020). The effectiveness of smartphone apps in improving financial capability. The European Journal of Finance, 26(4–5), 302–318. https://doi.org/10.1080/1351847x.2019.1639526

Gabor, D., & Brooks, S. (2017). The digital revolution in financial inclusion: International development in the fintech era. New Political Economy, 22(4), 423–436. https://doi.org/10.1080/13563467.2017.1259298

Gichuki, C. N., & Mulu-Mutuku, M. (2018). Determinants of awareness and adoption of mobile money technologies: Evidence from women micro entrepreneurs in Kenya. Women's Studies International Forum, 67, 18–22. https://doi.org/10.1016/j.wsif.2017.11.013

Hamdan, J. S., Lehmann-Uschner, K., & Menkhoff, L. (2022). Mobile money, financial inclusion, and unmet opportunities: Evidence from Uganda. The Journal of Development Studies, 58(4), 671–691. https://doi.org/10.1080/00220388.2021.1988078

Hasan, M., Le, T., & Hoque, A. (2021). How does financial literacy impact on inclusive finance? Financial Innovation, 7, 40. https://doi.org/10.1186/s40854-021-00259-9

Hasan, M., Noor, T., Gao, J., Usman, M., & Abedin, M. Z. (2023). Rural consumers' financial literacy and access to finTech services. Journal of the Knowledge Economy, 14(2), 780–804. https://doi.org/10.1007/s13132-022-00936-9

Hasan, Md. M., Yajuan, L., & Mahmud, A. (2020). Regional development of China's inclusive finance through financial technology. SAGE Open, 10(1). https://doi.org/10.1177/2158244019901252

Heo, W., Lee, J. M., & Rabbani, A. G. (2021). Mediation effect of financial education between financial stress and use of financial technology. Journal of Family and Economic Issues, 42(3), 413–428. https://doi.org/10.1007/s10834-020-09720-w

Hewa Wellalage, N., Hunjra, A. I., Manita, R., & Locke, S. M. (2021). Information communication technology and financial inclusion of innovative entrepreneurs. Technological Forecasting and Social Change, 163, 120416. https://doi.org/10.1016/j.techfore.2020.120416

Johnson, S. (2016). Competing visions of financial inclusion in Kenya: The rift revealed by mobile money transfer. Canadian Journal of Development Studies, 37(1), 83–100. https://doi.org/10.1080/02255189.2016.1140022

Johnson, S., & Arnold, S. (2012). Inclusive financial markets: Is transformation under way in Kenya? Development Policy Review, 30(6), 719–748. https://doi.org/10.1111/j.1467-7679.2012.00596.x

Kanga, D., Oughton, C., Harris, L., & Murinde, V. (2022). The diffusion of fintech, financial inclusion and income per capita. The European Journal of Finance, 28(1), 108–136. https://doi.org/10.1080/1351847x.2021.1945646

Kavita, & Suman. (2019). Determinants of financial inclusion in India: A literature review. Indian Journal of Finance, 13(11), 53–61. https://doi.org/10.17010/ijf/2019/v13i11/148417

Khera, P., Ng, S., Ogawa, S., & Sahay, R. (2022). Measuring digital financial inclusion in emerging market and developing economies: A new index. Asian Economic Policy Review, 17(2), 213–230. https://doi.org/10.1111/aepr.12377

Kim, K. (2022). Assessing the impact of mobile money on improving the financial inclusion of Nairobi women. Journal of Gender Studies, 31(3), 306–322. https://doi.org/10.1080/09589236.2021.1884536

Kotishwar, A. (2020). Impact of blockchain technology on efficiency of financial transactions. Indian Journal of Finance, 14(3), 36–44. https://doi.org/10.17010/ijf/2020/v14i3/151074

Kumar, N., Mathur, A., & Lal, S. (2013). Banking 101: Mobile-izing financial inclusion in an emerging India. Bell Labs Technical Journal, 17(4), 37–42. https://doi.org/10.1002/bltj.21573

Ky, S., Rugemintwari, C., & Sauviat, A. (2018). Does mobile money affect saving behaviour? Evidence from a developing country. Journal of African Economies, 27(3), 285–320. https://doi.org/10.1093/jafeco/ejx028

Larios-Hernández, G. J. (2017). Blockchain entrepreneurship opportunity in the practices of the unbanked. Business Horizons, 60(6), 865–874. https://doi.org/10.1016/j.bushor.2017.07.012

Lashitew, A. A., van Tulder, R., & Liasse, Y. (2019). Mobile phones for financial inclusion: What explains the diffusion of mobile money innovations? Research Policy, 48(5), 1201–1215. https://doi.org/10.1016/j.respol.2018.12.010

Levac, D., Colquhoun, H., & O'Brien, K. K. (2010). Scoping studies: Advancing the methodology. Implementation Science, 5(1), Article 69. https://doi.org/10.1186/1748-5908-5-69

Li, J., Wu, Y., & Xiao, J. J. (2020). The impact of digital finance on household consumption: Evidence from China. Economic Modelling, 86, 317–326. https://doi.org/10.1016/j.econmod.2019.09.027

Li, Y., Li, Z., Su, F., Wang, Q., & Wang, Q. (2020). Fintech penetration, financial literacy, and financial decision-making: Empirical analysis based on Tar. Complexity, 2020, Article 6696312. https://doi.org/10.1155/2020/6696312

Mary Khongwir, C., & Sharmiladevi, J. C. (2023). A bibliometric analysis on financial inclusion and financial literacy – Analyzing the current research trends. Indian Journal of Finance, 17(2), 27–53. https://doi.org/10.17010/ijf/2023/v17i2/172638

Maskara, P. K., Kuvvet, E., & Chen, G. (2021). The role of P2P platforms in enhancing financial inclusion in United States: An analysis of peer-to-peer lending across the rural–urban divide. Financial Management, 50(3), 747–774. https://doi.org/10.1111/fima.12341

Maurer, B. (2012). Mobile money: Communication, consumption and change in the payments space. The Journal of Development Studies, 48(5), 589–604. https://doi.org/10.1080/00220388.2011.621944

Meyll, T., & Walter, A. (2019). Tapping and waving to debt: Mobile payments and credit card behavior. Finance Research Letters, 28, 381–387. https://doi.org/10.1016/j.frl.2018.06.009

Mora, T., & Prior, F. (2018). The impact of mobile financial services' usage on microfinance delinquency. Applied Economics, 50(50), 5354–5365. https://doi.org/10.1080/00036846.2018.1486990

Morgan, P. J. (2022). Fintech and financial inclusion in Southeast Asia and India. Asian Economic Policy Review, 17(2), 183–208. https://doi.org/10.1111/aepr.12379

Munyegera, G. K., & Matsumoto, T. (2016). Mobile money, remittances, and household welfare: Panel evidence from rural Uganda. World Development, 79, 127–137. https://doi.org/10.1016/j.worlddev.2015.11.006

Munyegera, G. K., & Matsumoto, T. (2018). ICT for financial access: Mobile money and the financial behavior of rural households in Uganda. Review of Development Economics, 22(1), 45–66. https://doi.org/10.1111/rode.12327

N'dri, L. M., & Kakinaka, M. (2020). Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso. Telecommunications Policy, 44(3), 101926. https://doi.org/10.1016/j.telpol.2020.101926

Nag, A. K., & Shah, J. (2022). An empirical study on the impact of Gen Z investors' financial literacy to invest in the Indian stock market. Indian Journal of Finance, 16(10), 43–59. https://doi.org/10.17010/ijf/2022/v16i10/172387

Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003

Pham, M. T., Rajić, A., Greig, J. D., Sargeant, J. M., Papadopoulos, A., & McEwen, S. A. (2014). A scoping review of scoping reviews: Advancing the approach and enhancing the consistency. Research Synthesis Methods, 5(4), 371–385. https://doi.org/10.1002/jrsm.1123

Roa, L., Correa-Bahnsen, A., Suarez, G., Cortés-Tejada, F., Luque, M. A., & Bravo, C. (2021). Super-app behavioral patterns in credit risk models: Financial, statistical and regulatory implications. Expert Systems with Applications, 169, 114486. https://doi.org/10.1016/j.eswa.2020.114486

Sakyi-Nyarko, C., Ahmad, A. H., & Green, C. J. (2022). The gender-differential effect of financial inclusion on household financial resilience. The Journal of Development Studies, 58(4), 692–712. https://doi.org/10.1080/00220388.2021.2013467

Sehrawat, K., & Vij, M. (2020). Financial wellbeing among public and private sector employees: A preliminary study. Indian Journal of Finance, 14(1), 9–28. https://doi.org/10.17010/ijf/2020/v14i1/149855

Senyo, P. K., Karanasios, S., Gozman, D., & Baba, M. (2022). FinTech ecosystem practices shaping financial inclusion: The case of mobile money in Ghana. European Journal of Information Systems, 31(1), 112–127. https://doi.org/10.1080/0960085x.2021.1978342

Senyo, P. K., & Osabutey, E. L. C. (2020). Unearthing antecedents to financial inclusion through FinTech innovations. Technovation, 98, 102155. https://doi.org/10.1016/j.technovation.2020.102155

Shaikh, A. A., Glavee-Geo, R., & Karjaluoto, H. (2017). Exploring the nexus between financial sector reforms and the emergence of digital banking culture – Evidences from a developing country. Research in International Business and Finance, 42, 1030–1039. https://doi.org/10.1016/j.ribaf.2017.07.039

Suárez, S. L. (2016). Poor people's money: The politics of mobile money in Mexico and Kenya. Telecommunications Policy, 40(10–11), 945–955. https://doi.org/10.1016/j.telpol.2016.03.001

Suri, T., & Jack, W. (2016). The long-run poverty and gender impacts of mobile money. Science, 354(6317), 1288–1292. https://doi.org/10.1126/science.aah5309

Syed, A. A., Ahmed, F., Kamal, M. A., & Trinidad Segovia, J. E. (2021). Assessing the role of digital finance on shadow economy and financial instability: An empirical analysis of selected South Asian countries. Mathematics, 9(23), 3018. https://doi.org/10.3390/math9233018

Tandon, P., & Singh, A. B. (2021). Antecedents and extent of financial inclusion: A cross-sectional study. Indian Journal of Finance, 15(3), 50–67. https://doi.org/10.17010/ijf/2021/v15i3/158129

Wang, X. (2020). Mobile payment and informal business: Evidence from China's household panel data. China & World Economy, 28(3), 90–115. https://doi.org/10.1111/cwe.12334