The Relationship Between Digital Finance (FinTech) Development and Economic Growth
DOI:
https://doi.org/10.57033/rbcf6d72Keywords:
FinTech, digital finance, economic growth, financial inclusion, mobile money, digital lending, financial development, regulationAbstract
Digital finance, commonly referred to as FinTech, has transformed the way households, firms and governments make payments, save, borrow and manage risk. This article examines the relationship between FinTech development and economic growth by integrating the classical finance-growth literature with recent theoretical and empirical research on digital financial services. The analysis identifies six main transmission channels through which FinTech can support growth: lower transaction costs, broader financial inclusion, more effective savings mobilisation, improved credit allocation, stronger competition and better risk sharing. Evidence from cross-country studies, household-level research on mobile money and studies of digital lending indicates that FinTech has a positive effect on growth, particularly in developing economies. At the same time, the relationship is conditional on digital infrastructure, financial literacy and institutional quality, and excessive or poorly regulated expansion may generate financial stability risks. The article concludes with policy recommendations for maximising the growth benefits of digital finance.
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Copyright (c) 2026 Abdufattoh Qurbonaliyev (Author)
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