Digital Finance in Promoting Financial Inclusion and Economic Growth

Xinyi Kong ()
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Xinyi Kong: Jiangsu Tianyi High School

A chapter in Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025), 2025, pp 234-246 from Springer

Abstract: Abstract Digital finance has emerged as a powerful driver of economic inclusion and growth in developing countries. By leveraging mobile banking technologies, digital wallets, and AI-driven platforms, it enables previously unbanked populations and small businesses to access essential financial services. This enhanced access to credit, savings, and insurance not only boosts economic participation but also significantly increases productivity and reduces poverty levels, especially in regions with underdeveloped infrastructure. However, the rapid expansion of digital finance also catalyzes several critical challenges. Data privacy breaches pose a significant risk to users, while regulatory fragmentation complicates compliance and cross-border transactions. Additionally, sustainability concerns need to be addressed to ensure long-term viability. To address these issues, collaborative efforts are imperative. Governments must adopt harmonized regulations to streamline the digital finance landscape. Meanwhile, tech firms should invest in AI-powered fraud detection and green fintech solutions to enhance security and sustainability. Only through such balanced innovation can digital finance fully realize its potential as a catalyst for equitable and sustainable development, ultimately benefiting millions of people in developing economies.

Keywords: Digital Finance; Financial Inclusion; Economic Development (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-770-0_29

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