Through what channels does financial technology (FinTech) impact financial development? A systematic literature review

Obioma Chidiebere Obijama (), Oluwatoyin Abidemi Somoye () and Huseyin Ozdeser ()
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Obioma Chidiebere Obijama: Near East University , Department of Business Administration
Oluwatoyin Abidemi Somoye: Near East University, Department of Economics
Huseyin Ozdeser: Near East University, Department of Economics

SN Business & Economics, 2025, vol. 5, issue 12, 1-31

Abstract: Abstract This systematic literature review synthesized evidence from 56 peer–reviewed articles published between 1980 and 2024, using Cihak et al. (2013) framework, to investigate how FinTech impacts core financial functions like information and capital allocation, monitoring and corporate governance, risk trading and management, savings mobilization and pooling, and transaction of goods, services, and financial instruments. The result demonstrates that Fintech has a significant positive impact on financial development across multiple dimensions like boosting financial inclusion, increasing efficiency, minimizing information asymmetry, and streamlining transactions. However, we identified potential challenges and research limitations, such as insufficient clear causal relationships, assessing the consequences on income inequality, systemic risk spillovers, effect on consumer indebtedness, and regulatory gaps. Overall, this review provides a comprehensive synthesis of current information on FinTech and financial development, with implications for policymakers, academics, and industry specialists.

Keywords: Financial technology; Financial development; Financial inclusion; Systematic review (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s43546-025-00967-9

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