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Innovations Across Emerging Markets: Multiple Models, Shared Lessons

Author

Listed:
  • Giulia Ajmone Marsan

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Adelia Rahmawati

    (Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

Fintech is emerging as a key driver of financial inclusion and innovation across emerging and developing economies. Its rapid growth is underpinned by large unbanked and underbanked populations, rising internet penetration, a shift towards mobile-first consumer behaviour, younger demographic profiles, and the digital acceleration catalysed by the COVID-19 pandemic. This paper examines how different fintech ecosystem models evolve under varying institutional, regulatory, and technological conditions. Drawing on illustrative cases from Latin America, ASEAN, Africa, and South Asia, it highlights how enabling regulatory frameworks, digital public infrastructure, startup ecosystems, and mobile-first solutions have shaped fintech development. These models are not mutually exclusive and often coexist within the same ecosystem, generating shared challenges such as fragmented markets, uneven regulatory capacity, persistent digital divides, and weaknesses in digital infrastructure. Realising fintech’s transformative potential therefore requires deliberate policy choices that promote equitable digital participation, foster competition, and support responsible innovation. For ASEAN, regional initiatives such as the ASEAN Regional Payment Connectivity and the Digital Economy Framework Agreement present timely opportunities to deepen integration, expand cross-border fintech services, and support sustained growth. Aligning fintech development with financial inclusion objectives will be critical to ensuring that digital finance contributes to sustainable and equitable development across the region.

Suggested Citation

  • Giulia Ajmone Marsan & Adelia Rahmawati, 2026. "Innovations Across Emerging Markets: Multiple Models, Shared Lessons," Working Papers DP-2025-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2025-11
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    References listed on IDEAS

    as
    1. Kriti Kishor & Sanjeev K. Bansal & Roshan Kumar, 2025. "The Role of Fintech in Promoting Financial Inclusion to Achieve Sustainable Development: An Integrated Bibliometric Analysis and Systematic Literature Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 5664-5692, March.
    2. Dao Ha & Mai Nguyen & Kim Nguyen & Ahmet Şensoy, 2025. "Unveiling financial inclusion dynamics: Fintech's resonance in Association of Southeast Asian Nations (ASEAN)," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 1348-1371, April.
    3. Filippo Bontadini & Francesco Filippucci & Cecilia Jona-Lasinio & Giuseppe Nicoletti & Alessandro Saia, 2024. "Digitalisation of financial services, access to finance and aggregate economic performance," OECD Economics Department Working Papers 1818, OECD Publishing.
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    5. Anagnostopoulos, Ioannis, 2018. "Fintech and regtech: Impact on regulators and banks," Journal of Economics and Business, Elsevier, vol. 100(C), pages 7-25.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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