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Blockchain and Decentralized Finance in Fintech Startups in Emerging Markets: A Systematic Literature Review of Opportunities and Challenges

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  • Ian Staley
  • Eric Amankwa

Abstract

This study examined the role of blockchain technology and decentralized finance (DeFi) in the growth of fintech startups within emerging markets, while also exploring challenges hindering blockchain adoption. Guided by two objectives, to assess blockchain and DeFi’s contributions to fintech development and to identify adoption barriers, the research employed a systematic literature review of 46 peer-reviewed articles published in English within the last decade. Sources were drawn from reputable databases. A quality assessment checklist ensured the validity and relevance of selected studies, and thematic analysis aligned findings with the research questions. Results revealed five key benefits of blockchain and DeFi for fintech startups: fostering innovative business models, reducing transaction costs, and expanding access to capital through tokenization. However, several challenges persist, including regulatory uncertainty, technological and cost barriers, privacy and data security concerns, limited inter-organizational trust, resistance to change, and scalability issues. This study contributes to the finance and banking literature by synthesizing evidence on blockchain’s potential to transform fintech ecosystems in emerging markets. The findings suggest that clear regulatory frameworks and strengthened technological infrastructure are critical to facilitating blockchain adoption. Limitations include the study’s cross-sectional design and focus on emerging markets, indicating the need for further empirical research. JEL classification numbers: G20, G23, O16, O33.

Suggested Citation

  • Ian Staley & Eric Amankwa, 2026. "Blockchain and Decentralized Finance in Fintech Startups in Emerging Markets: A Systematic Literature Review of Opportunities and Challenges," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 16(2), pages 1-4.
    • Handle: RePEc:spt:apfiba:v:16:y:2026:i:2:f:16_2_4
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    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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