Data-Driven Finance: Unlocking New Models for Development

Patrice Kandolo Kabeya
Additional contact information
Patrice Kandolo Kabeya: Southern Africa Development Community

Chapter Chapter 8 in Development and the Power Theory of Economics, 2025, pp 317-397 from Springer

Abstract: Abstract This chapter examines the transformative role of data-driven finance in reshaping development paradigms and creating innovative models for inclusive growth. Traditional financial systems in developing economies have often been constrained by weak infrastructure, information asymmetries, and limited access to credit, which hinder productive investment and sustainable development. The advent of big data, digital platforms, fintech, and artificial intelligence introduces new opportunities to address these structural constraints by enabling real-time decision-making, improving financial inclusion, and facilitating risk management. Through analysis of case studies across Africa, Asia, and Latin America, the chapter demonstrates how mobile banking, digital credit scoring, blockchain, and algorithmic lending models are expanding access to finance for previously excluded populations, particularly women, youth, and small-scale entrepreneurs. It highlights how these innovations enhance transparency, reduce transaction costs, and mitigate corruption risks, while also fostering trust between governments, financial institutions, and citizens. However, the chapter also underscores the challenges posed by data-driven finance, including regulatory gaps, cybersecurity risks, digital divides, and ethical concerns around privacy and algorithmic bias. By integrating insights from development economics, financial technology, and institutional theory, the analysis situates data-driven finance as both a disruptive and enabling force in advancing the Sustainable Development Goals. Ultimately, the chapter argues that unlocking the full potential of data-driven finance requires not only technological innovation but also strong governance frameworks, equitable access to digital infrastructure, and inclusive policies that prioritise development outcomes over profit maximisation.

Keywords: Data-driven finance; Digital transformation; Financial inclusion; Fintech; Sustainable development (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-032-07926-8_8

Ordering information: This item can be ordered from
http://www.springer.com/9783032079268

DOI: 10.1007/978-3-032-07926-8_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().