UNPACKING FINANCIAL INNOVATION FOR INCLUSIVE GROWTH: A NARRATIVE REVIEW OF EVIDENCE AND FUTURE DIRECTIONS
DOI:
https://doi.org/10.35631/AIJBES.829103Keywords:
Digital Divide, Financial Inclusion, Financial Innovation, Fintech, Inclusive Growth, Narrative Review, Regulatory GovernanceAbstract
Financial innovations have transformed classic economic architectures and provided alternative avenues to make capital more democratic, inclusive growth more inclusive. To reconcile theoretical frictions within the fragmented literature, this narrative review systematically screened 1,826 records from the Scopus database, synthesizing a final sample of 33 peer-reviewed studies. The central theoretical contribution of this review is the establishment of an explicit conceptual mechanism: financial innovation drives structural financial inclusion and equitable socio-economic development only when strictly mediated by robust digital capability and proactive governance. Structured across four core themes, the synthesis evaluates technological drivers, macroeconomic impacts, ecosystem constraints, and institutional governance. Key insights reveal that uncritical technological deployment risks exacerbating disparities, translating traditional financial exclusion into digital exclusion driven by deficits in digital literacy, device affordability, broadband infrastructure, systemic trust, and equitable access. Ultimately, this review asserts that long-term developmental outcomes are not guaranteed by technology alone, providing an evidence-based roadmap that advocates for adaptive policy frameworks and frugal innovation to embed ethical inclusion into future financial ecosystems.
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