Adoption of FinTech Innovations and Financial Inclusion in India

Abstract

Financial inclusion has emerged as a critical policy and developmental priority in emerging economies, particularly in India, 
where a significant portion of the population has historically remained excluded from formal financial systems. The rapid growth 
of Financial Technology (FinTech) innovations—including digital payments, mobile banking, peer-to-peer lending, blockchain, 
and artificial intelligence–driven financial services—has transformed the financial services landscape and created new pathways 
for inclusive growth. This study examines the adoption of FinTech innovations and their impact on financial inclusion in India 
from a techno-managerial and policy-oriented perspective. Using an extensive review of academic literature, policy reports, and 
industry studies, the paper analyzes the drivers, enablers, and barriers to FinTech adoption and evaluates its role in expanding 
access, usage, and quality of financial services. A conceptual framework is proposed to illustrate the relationship between FinTech 
adoption, institutional support, user trust, and inclusive financial outcomes. The findings suggest that FinTech innovations have 
significantly enhanced financial inclusion by reducing transaction costs, improving accessibility, and enabling customized financial 
solutions. However, challenges related to digital literacy, data privacy, regulatory uncertainty, and infrastructure gaps persist. 
The study concludes with managerial implications, policy recommendations, and future research directions.