ROLE OF FINTECH AND DIGITAL FINANCIAL SERVICES ON FINANCIAL INCLUSION IN NEPAL

Abstract

The purpose of this study is to analyze the variables that influence fintech adoption and the effect that it has on financial inclusion in Nepal. The study is constructed using a mixed-methods methodology, combining descriptive and causal analysis, and a sample size of 385 respondents from the fintech industry, the government, and academic institutions. The most important results suggest that the adoption of fintech, technical infrastructure, digital literacy and government regulations greatly improve financial inclusion. These factors explain 82% of the variation in financial inclusion. Both correlation and regression studies come to the conclusion that there are significant positive connections between these parameters and financial inclusion. While the regulatory environment and economic circumstances showed a correlation with financial inclusion, the regression model did not find them as significant predictors. The research highlights the need for enhancing regulatory frameworks, making investments in technology infrastructure, creating supporting government policies, and boosting digital literacy in order to propel financial inclusion via the use of fintech. Policymakers, financial institutions, and other stakeholders in Nepal who are working toward the goal of establishing a vibrant financial ecosystem that fosters socioeconomic development may find these insights to be of critical importance. Keywords: Fintech adoption, financial inclusion, digital literacy, Technological infrastructure, government policies