Fintech and Financial Inclusion: A Statistical Study on Digital Banking

Abstract: Banking services have been transformed by the rapid expansion of financial technology (Fintech) in India, especially through platforms like Aadhaar-enabled systems, mobile banking and UPI. The role of Fintech in advancing financial inclusion is investigated in this study. The study examines trends in digital transaction volumes, account ownership and financial usage patterns using secondary data from the World Bank and the National Payments Corporation of India (NPCI) among others.

The relationship between Fintech adoption and financial inclusion metrics including account penetration, under-developed area outreach and gender disparities is investigated using statistical and analytical methods. The results indicate that account ownership and digital transactions have significantly increased, which is indicative of the growing adoption of Fintech services in both urban and semi-urban areas. But there are still disparities in rural usage, which suggests that certain policy changes are required.

This study is significant as it highlights the way in which Fintech can be a source of growth and a bridge for underserved groups, particularly in the under-developed states in India where financial inclusion has been low for a long time. Through its engagement of digital adoption with trends of inclusion, the research offers policymakers, regulators and banks insights to develop more focused interventions. It also emphasises the need for transparency and for enhancing digital literacy and infrastructure so that the benefits of Fintech reach the most disadvantaged.

Keywords: Fintech, Financial Inclusion, Digital Banking