FinTech and financial inclusion: Opportunities and challenges

Abstract

Financial inclusion, in essence, is about promoting broader access to and usage of financial services, in particular payment services. At the heart of payment services are transaction accounts. This paper will describe the crucial role played by transaction accounts and how stakeholders can promote access and use of these accounts. It will also look at recent FinTech developments and highlight the role innovations can play in broadening access to financial services while addressing the related risks. The discussion will be based on two reports on payment aspects of financial inclusion released by the Committee on Payments and Market Infrastructures and the World Bank. The framework developed to promote access and use of transaction accounts in the first report underpins the second report, which assesses the potential of FinTech developments for financial inclusion.