FinTech and AI propel sustainable finance, but inequality still holds back inclusion

The research confirmed that age, education, income, and employment status are the most influential factors in determining whether individuals hold bank accounts. Individuals under 25 and over 65, people with lower education levels, and those in low-income or unstable employment categories are least likely to have access to formal financial services. These trends persisted across all three observed periods - pre-pandemic, during-pandemic, and post-pandemic - indicating that structural barriers remain entrenched.

A newly published study has confirmed that financial technology and artificial intelligence are central enablers of sustainable economic development and financial inclusion, particularly in post-pandemic Europe. However, structural disparities, low digital literacy, and limited infrastructure continue to challenge equitable access to financial services across regions.

The study, titled "FinTech and AI as Opportunities for a Sustainable Economy" and authored by Vasile Valentina and Otilia Manta of the Romanian Academy and published in the journal FinTech, evaluates how FinTech and AI interact to advance the United Nations’ Sustainable Development Goals (SDGs). Using data from the Global Findex Database and applying Principal Component Analysis (PCA) and Analysis of Variance (ANOVA), the authors examined bank account ownership and digital access trends before, during, and after the COVID-19 pandemic. Their findings highlight significant inequalities between countries and demographic groups, despite digital progress.

The research confirmed that age, education, income, and employment status are the most influential factors in determining whether individuals hold bank accounts. Individuals under 25 and over 65, people with lower education levels, and those in low-income or unstable employment categories are least likely to have access to formal financial services. These trends persisted across all three observed periods - pre-pandemic, during-pandemic, and post-pandemic - indicating that structural barriers remain entrenched.

FinTech platforms have improved financial access, particularly during the pandemic, when mobile banking adoption rose sharply. From 2019 to 2023, mobile banking usage in Europe increased from 50% to 78%, while online transactions grew from 55% to 82%. Yet, the study found that these gains are unevenly distributed. Developed countries like Germany, France, and Sweden (Cluster 3) exhibit high financial inclusion, near-universal bank account ownership, and widespread digital access. In contrast, countries such as Albania, Azerbaijan, and Moldova (Cluster 1) continue to experience low adoption rates, with only 45% bank account ownership and limited mobile banking penetration.

The authors attribute these disparities to a combination of technological, socioeconomic, and institutional factors. Chief among them are poor communication infrastructure, high costs of technological transfer, and low levels of financial literacy. Discrimination in credit access and insufficient rural banking services further compound the problem, particularly in underdeveloped areas.

Despite these challenges, the study presents strong evidence that FinTech and AI offer powerful tools for advancing sustainable finance. FinTech platforms enable underserved individuals to access digital wallets, microloans, and impact investing opportunities. Meanwhile, AI supports personalized risk assessment, fraud detection, and predictive analytics, which improve decision-making and extend credit to those without traditional credit histories.

The synergy between FinTech and AI is a critical aspect of the study. The authors argue that their combined application enhances efficiency, security, and scalability of financial services. AI algorithms embedded in FinTech platforms can tailor services to user behavior, facilitate faster loan approvals, and match green projects with investors more accurately. However, successful implementation requires interoperable systems, regulatory alignment, and public-private partnerships.

To guide future development, the authors propose a Sustainable Digital Financial Inclusion Model structured around four pillars: digital infrastructure development, financial literacy and empowerment, regulatory harmonization, and AI-driven inclusion strategies. The model emphasizes expanding broadband access, deploying AI-based credit scoring tools, and developing targeted education programs for vulnerable groups.

The model also recognizes that financial inclusion must be treated as a public good. Recommendations for governments include investing in infrastructure and enforcing anti-discrimination policies in credit access. For the private sector, the study calls for inclusive financial product design and ethical AI practices to reduce algorithmic bias and build user trust.

The report identifies the COVID-19 pandemic as a catalyst that accelerated digital financial adoption. With social distancing disrupting traditional banking, consumers rapidly migrated to mobile and online platforms. This shift, while positive, revealed systemic gaps in access and preparedness, particularly in rural and low-income communities. By 2023, 85% of Europeans held a bank account, up from 75% in 2019, but the authors caution that access alone is not enough without active usage and financial capability.

Policy implications are wide-ranging. The authors urge regulatory bodies to align national financial inclusion strategies with open science and technological accessibility frameworks, such as the United Nations’ “International Decade of Sciences for Sustainable Development.” Coordination across governments, banks, and tech firms is needed to close inclusion gaps and foster resilient financial ecosystems.

To sum up, while the digital transformation of financial services holds tremendous potential for inclusive growth, realizing this potential will require systematic efforts to address inequalities. Countries in Clusters 1 and 2 must prioritize infrastructure investment, literacy programs, and adaptive regulatory models to catch up with high-inclusion economies.