ABSTRACT
During recent years, the world has experienced an unprecedented boom in fintech. This development was fueled by advancements in connectivity, such as ubiquitous availability of mobile connection. Historically similar advancements did not immediately transfer to developing economies. In contrast, the adoption of mobile connectivity in developing economies was extremely robust. This enabled the explosion of mobile-aided financial technologies, such as mobile money, mobile payments, and mobile lending. The features of these technologies quickly matched or surpassed their counterparts in more developed economies. Due to lack of traditional banking infrastructure, the advent of these technologies was a game-changer that completely reshaped the business landscape. This chapter summarizes the recent advancements in academic research on the impact of new financial technologies on economic growth. It also draws lessons from the experience in developing economies that may be useful for countries with more developed financial systems.
