IDEAS home Printed from https://ideas.repec.org/a/cwf/ssarti/ss202539.html

FinTech Adoption and Financial Inclusion in the United Kingdom: A 34-Year Econometric Assessment of Digitalisation Before and After the COVID-19 Pandemic

Author

Listed:
  • Emmanuel Olatunbosun, Iyanu
  • Rebecca Olatunbosun, Abosede

Abstract

Introduction: Financial technology (FinTech) innovations have transformed financial access globally, yet their impact on financial inclusion in advanced economies remains understudied. The United Kingdom provides a critical case study given its position as a global FinTech hub and rapid digital banking adoption accelerated by COVID-19.Objective: This study investigates the effect of FinTech adoption on financial inclusion in the UK over 1990-2024, examining pre- and post-pandemic dynamics and the moderating roles of internet penetration and macroeconomic conditions.Methods: Using secondary data from the Financial Conduct Authority, World Bank, and national surveys, the study applies Generalized Method of Moments (GMM) estimation to address endogeneity. The baseline model (LOGFI_t = β0 + β1LOGFA_t + β2LOGGDPC_t + β3LOGIP_t + β4LOGCPI_t + εi) evaluates short- and long-run relationships among financial inclusion (LOGFI), FinTech adoption (LOGFA), GDP per capita (LOGGDPC), internet penetration (LOGIP), and consumer price index (LOGCPI).Results: FinTech adoption exhibits positive but statistically insignificant effects on financial inclusion (coef=0.002461, p=0.1486). Internet penetration significantly enhances inclusion (coef=0.002584, p=0.0043), while higher GDP per capita unexpectedly reduces formal financial participation (coef=-0.054067, p=0.0036). Inflation shows negative but insignificant effects (p=0.1753). Model diagnostics confirm robustness (R²=0.9936, J-statistic=0.0000).Conclusions: Digital infrastructure rather than FinTech adoption drives UK financial inclusion. Policymakers should prioritize nationwide connectivity and address why higher incomes correlate with reduced formal banking participation, suggesting shifts toward alternative financial assets among wealthier cohorts.

Suggested Citation

  • Emmanuel Olatunbosun, Iyanu & Rebecca Olatunbosun, Abosede, 2025. "FinTech Adoption and Financial Inclusion in the United Kingdom: A 34-Year Econometric Assessment of Digitalisation Before and After the COVID-19 Pandemic," SAP Southern Studies, South American Publishing.
    • Handle: RePEc:cwf:ssarti:ss202539
    DOI: 10.62486/ss202539
    as

    Download full text from publisher

    File URL: https://southam.pub/journals/files/ss/ss202539en.pdf
    Download Restriction: no
    File URL: https://southam.pub/journals/files/ss/ss202539es.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.62486/ss202539?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cwf:ssarti:ss202539. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: South American Publishing Journals Manager (email available below). General contact details of provider: https://southam.pub/journals/ss.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.