Development and Usage of FinTech in the Emerging Economies

The advent rise of Financial Technology (FinTech) has precipitated a profound transformation in the manner by which financial services are provided to individual customers on a global scale. The introduction of innovative solutions by FinTech firms has compelled banks and other traditional financial intermediaries to undergo a process of evolution, offering efficient products and services. In recent times, novel FinTech offerings have facilitated financial inclusion in developing countries, thereby assisting in the achievement of the United Nations Sustainable Development Goals (SDGs) and enhancing the quality of life for those living below the poverty line. The role of FinTech in fostering economic growth in emerging markets is significant, with machine learning, big data analytics, and mobile phone penetration playing a pivotal role. However, the ecosystem required to develop these FinTech solutions differs significantly between emerging and developed markets. This chapter examines these differences in FinTech developments and how FinTech ventures are being used in Bangladesh, China, and India, which are considered the largest and fastest-growing emerging economies globally.