Impact of digital finance on financial inclusion and stability

Abstract

This article provides a discussion on some issues associated with digital finance – an area which has not been critically addressed in the literature. Digital finance and financial inclusion has several benefits to financial services users, digital finance providers, governments and the economy; notwithstanding, a number of issues still persist which if addressed can make digital finance work better for individuals, businesses and governments. The digital finance issues discussed in this article are relevant for the on-going debate and country-level projects directed at greater financial inclusion via digital finance in developing and emerging economies. JEL Classification: E44, F65, G18, G21, G28, Keywords: Financial inclusion, Fintech, Digital finance, Financial stability, Financial risk, Financial institutions