Role of Fintech Innovation in Financial Inclusion: Avoiding Vulnerability of Cybercrime and Backwardness

Abstract

Fintech plays a vital role in the financial industry as it has experienced tremendous growth in the last decade and more importantly, services sector is shifting towards digitalization. Financial inclusion particularly contributes to the economic and social well-being of the country. This study provides insight into fintech and financial inclusion by addressing vulnerability, including cybercrime and backwardness, to explain their impact on individual and societal well-being using the PLS-SEM analysis technique. The findings of the study explore that Fintech has significantly affected financial inclusion which is positively associated with individual and societal well-being. Moreover, the study suggests that vulnerability (cybercrime and backwardness) does not moderate societal and individual well-being. An explanatory cross-sectional study is conducted to investigate the role of fintech innovation in financial inclusion avoiding the vulnerability of cybercrime and backwardness. Applying a simple random sampling technique with a sample size of 514 respondents, primary data is collected through self-administered survey questionnaires. The PLS-SEM approach is used to test the study's theoretical framework. Empirical results of the research support the proposed hypothesis by determining the significant influence of financial inclusion on individual and societal well-being, fintech and financial inclusion, and vulnerability to individual and societal well-being.