The FinTech Inclusion Paradox: A Conceptual Framework of Behavioural, Cognitive, and Structural Barriers to Financial Inclusion in Underserved Populations

Abstract

Financial technology (FinTech) has become one of the focal points of financial inclusion policies across the world, and especially in emerging and developing economies. Digital payment systems, mobile banking systems, app-based credit, and micro-savings are products that are massively marketed as solutions to traditional barriers to access that came with traditional financial institutions. The article constructs a conceptual framework that shows the mediating and moderating role of behavioural barriers, cognitive ability constraints, and structural limitations on the relationship between FinTech access and financial well-being. The study helps to develop a more intricate perception of digital financial inclusion, as its framing of financial inclusion as a capability-based and outcome phenomenon, as opposed to a technological state, helps to enrich the concept of financial inclusion. The suggested framework provides both theoretical understanding and practical direction to policymakers, FinTech innovators, and development agencies who aim to develop inclusive and sustainable digital financial ecosystems.