Unlocking the Potential of Fintechs for Financial Inclusion: A Delphi-Based Approach

Luiz Antonio Joia and Joaquim Pedro Vasconcelos Cordeiro
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Luiz Antonio Joia: Brazilian School of Public and Business Administration, Getulio Vargas Foundation, Rio de Janeiro 22231-010, Brazil
Joaquim Pedro Vasconcelos Cordeiro: Brazilian Economic and Social Development Bank (BNDES), Rio de Janeiro 20031-917, Brazil

Sustainability, 2021, vol. 13, issue 21, 1-19

Abstract: The financial sector is experiencing an accelerated process of transformation shaped by fintechs, which opens an important window of opportunity to increase financial inclusion in emerging markets, such as Brazil, with high financial exclusion. Thus, this article investigates, through a Delphi approach involving fintech professionals, the potential of fintechs to enable financial inclusion in emerging markets, using Brazil as a proxy. The analysis carried out identified three domains related to fintechs that have the potential to impact financial inclusion: (i) fintechs can serve niches of people without a bank account in the traditional financial market, (ii) fintechs can reduce costs for clients through increased competition, and (iii) fintechs can offer financial services in remote locations, far from traditional financial institutions. Thus, with the objective of developing a public agenda of financial inclusion through fintechs, the article proposes four lines of public policies: (i) expansion and modernization of mobile and internet infrastructure, (ii) improvement of the population’s financial and digital education, (iii) implementation of a trustworthy environment for the fintech clients, and (iv) development and enforcement of an effective legal and regulatory framework for fintechs. These policies, if implemented, can benefit people excluded from the financial system around the world.

Keywords: fintechs; financial inclusion; financial sector; Delphi method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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