THE IMPACT OF FINTECH ON FINANCIAL INCLUSION IN PAKISTAN: AN EMPIRICAL ANALYSIS

Abstract

This study examined the impact of financial technology (fintech) on financial inclusion in Pakistan through a quantitative empirical analysis. Data were collected from 450 respondents across urban and rural areas of Pakistan using a structured questionnaire. The research employed multiple regression analysis, correlation analysis, and independent samples t-tests to assess the relationship between fintech adoption and financial inclusion indicators. Results revealed a significant positive relationship between fintech usage and financial inclusion (β = 0.687, p < 0.001), with mobile banking and digital wallets showing the strongest impact. Urban-rural disparities persisted, with urban respondents demonstrating significantly higher fintech adoption rates (M = 3.89, SD = 0.72) compared to rural respondents (M = 2.54, SD = 0.83), t(448) = 15.23, p < 0.001. Demographic factors including education, income, and digital literacy moderated the relationship between fintech and financial inclusion. The findings suggested that while fintech significantly enhanced financial inclusion in Pakistan, addressing infrastructure gaps, improving digital literacy, and implementing targeted policies remained critical for achieving comprehensive financial inclusion. This research contributed to the literature by providing empirical evidence on fintech's role in emerging economies and offered practical implications for policymakers and financial institutions.

Keywords: fintech, financial inclusion, mobile banking, digital wallets, Pakistan, emerging markets, digital financial services