Title: Technology adoption: impact of FinTech on financial inclusion of low-income households

Authors: Darius Young; John Young

Addresses: Department of Systems and Technology, Auburn University, USA ' Department of Accounting and Finance, Clark Atlanta University, USA

Abstract: FinTech is the saviour of unbanked and underbanked Americans' inclusion into the formal banking system. The only limitation to financial inclusion is the adoption of technology (i.e., smartphone ownership and internet access), enabling mobile banking services access. High technology adoption rates will expedite socio-economically disadvantaged households into mobile banking services. Socio-economic characteristics are the standard criteria for determining who is unbanked or underbanked (e.g., low-income American households, women, and African American households). Logistic regression analysis can be used to estimate the likely technology adoption rate of low-income American households. African American households have no significant differences across socio-economic characteristics than the reference group of low-income households' socio-economic characteristics. In contrast, socio-economic factors are significant determinants of technology adoption rates in White American households in those low-income households are less likely to adopt new technologies. The high technology adoption rates of African American households make them ideal candidates for FinTech services.

Keywords: FinTech; financial inclusion; low-income; African American; gender; technology adoption; financial technology; mobile banking; virtual bank; unbanked; underbanked.

DOI: 10.1504/IJEF.2022.124480

International Journal of Electronic Finance, 2022 Vol.11 No.3, pp.202 - 218

Accepted: 01 Mar 2022
Published online: 27 Jul 2022 *

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