Fintech Adoption and its impact on Financial Literacy and financial inclusion of street vendors

Abstract

Opportunities for financial inclusion, especially among marginalized people, have been opened up by the fast rise of financial technology (fintech), which has changed the financial services landscape. the level of financial education and access that street sellers, who are frequently left out of the official banking system, receive as a result of fintech adoption. Many street sellers are now able to utilize financial tools that were previously out of their grasp by utilizing digital payment platforms, mobile banking, and microfinance applications. Examining the correlation between fintech use and critical measures of financial literacy, including familiarity with interest rates, ability to create and stick to a budget, and savings habits, using main data gathered from interviews and structured surveys conducted in urban and semi-urban areas. Access to formal banking services, insurance, and credit are some of the metrics used to measure the effect on financial inclusion. The results imply that street sellers' financial literacy and engagement with formal financial institutions are both greatly enhanced by the use of fintech. Nevertheless, obstacles like a lack of digital literacy, problems with trust, and regulatory hurdles continue. In its last section, the report offers policy suggestions for meeting the requirements of the informal sector through inclusive fintech solutions and better digital financial education.