ADOPTION OF DIGITAL FINANCIAL SERVICES

ABSTRACT:
Technology has transformed how financial services are created, delivered, and
consumed throughout the past decade. The growing use of mobile devices and the
internet, and combined with the emergence of blockchain, digitalization, and cheap
data technology, machine learning, and artificial intelligence have fast-tracked the
digital worldwide economic transformation. This paper highlights the key issues
and present dynamics of financial services, digitalization, and fintech, and research
directions for the future directions using bibliometric analysis, then a thematic
examination of the literature.
Digital payments and baking have benefited from the global adoption of the
internet and smart devices. Research that provides a thorough synthesis and
analysis of the variables influencing the use and uptake of digital banking and
payment methods is lacking.
The benefits of financial inclusion and digital banking for underserved areas are
being explored more frequently. However, popular study hasn't focused on
understanding the challenges that come with digital approaches to financial
inclusion.
We conclude that, even though digital services have facilitated and closed the gap
in physical access to financial services, these services have not been utilized
because of a lack of social awareness, financial literacy, and even basic
connectivity. By providing a thorough critical analysis and a fresh viewpoint on
both digital finance and financial inclusion mechanisms, this paper conceptually
contributes to the literature on the uptake of digital financial services.

Keywords: digital finance, mobile banking, artificial intelligence, financial

inclusion, digital transformation, financial services, fintech, risk management.

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INTRODUCTION
With the development of new technologies, the way that financial services are
generated, produced, and used has changed. technology. The term "fintech"
describes the blending of technology and financial services. As stated by Fintech is
an inventive technology that enhances and automates financial processes,
according to a detailed definition.
Asia saw a faster rate of Fintech uptake and dissemination. Asia is the global
leader in fintech adoption, according to a 2019 report by Ernst & Young (EY).
China and India are the world's leaders in Fintech adoption. India has the second-
highest rate of adoption of fintech globally. 87%, which is higher than the global
average of 64%.
The lack of banking infrastructure in Asia is more of a problem that fintech is
trying to solve. which is not the case for the regions of the USA and Europe.
More people using smartphones and the internet, investments in fintech firms, and
the key drivers for new product development continue to be a willingness to use
technology. Fintech development in developing nations. Additionally, the Covid19
epidemic increased the rate and scope of Fintech adoption and growth in emerging
markets.
The evolution of digital Economic growth and financial inclusion are dependent on
developments in Fintech and digital design, delivery, and consumption of financial
services are changing due to technology. It is therefore necessary to consolidate the
knowledge in this area as the new era of virtual financial services comes into
being. these intricately related areas. Such research might serve as a quick
indicator for academics to comprehend the Knowledge development and current
state. Future directions for research in Fintech and the financial services are
becoming more digital.
We apply literature analysis on Fintech and digitalization using bibliometric
analysis, financial assistance. A systematic literature review is followed by a
hybrid method incorporating bibliometric analysis. Review permits us to develop
themed future research and have a comprehensive understanding of the subject.
directions.
This research adds to the corpus of knowledge on Fintech and digital financial
services in more ways than one. than one method. In the beginning, we use a
distinct two-stage sequential approach by initially identifying major A themed
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literature evaluation is followed by research themes employing bibliometric
analysis. the like technique aids in providing depth and breadth to the field. It
serves as a reference for scholars working in this field.
The report offers suggestions for future Fintech and digital finance research.
services, particularly given the terrain change and rate of financial services'
digitalization. This essay seeks to comprehend the development of knowledge and
its current state, draw create a thematic map, and specify potential future study
areas. We do this by examining the current bibliometric analysis and a thematic
literature review combined into one lens to view the material.
The foundation of society's financial strength is financial inclusion. However, the
argument about a lot of disagreement over what financial inclusion truly means.
Financial inclusion is influenced by several key elements, including the financial
system, innovation, financial stability, financial literacy, and regulatory
frameworks.
The fourth theme examines how digital financial services are being adopted by
technology in the era of fintech. If consumers absorb the adjustments while
consuming, financial inclusion will be achievable. Given the recent advancements
in technology, banking services. Studies on this subject concentrate on usage levels
of intention or uptake of various fintech services, including mobile payments
online banking, digital wallets, and other financial services.
There is no doubt that demand is rising along with the supply side of Fintech as
more traditional financial institutions indulge in advanced technologies. Customers
and investors accept the new financial services, if cautiously. So, we discover a lot
of study on affecting users' intents, levels of adoption, and client happiness. There
are repercussions for the financial service companies are growing by utilizing
digitalized service delivery methods.

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LITERATURE REVIEW

Through the integration of representations, the study uses a novel two-stage

sequential technique to comprehend knowledge progression and identify trends.
The intellectual organization and thematic development of the field are revealed by
the bibliometric examination. The review of thematic literature offers perceptions
into the development of knowledge within each area and aids in determining the
future focus of study. The study's bibliometric analysis includes scientific mapping
and performance analysis. Performance analysis identifies crucial traits of the
subject matter being studied in terms of sources, writers, and documents.
Finding pertinent documents that support the goal of the study is the first and most
important step in any bibliometric analysis. To this end, the study used the 1984 to
2021 period in the search strategy and document selection process. Although there
are few early documents and the field has made significant progress in the last ten
years, using the longer time frame makes sense to avoid missing any seminal
research.
The digital divide has now been filled due to Fintech, mobile banking, and mobile
payments; hence this topic is no longer relevant. The concept of mobile money has
evolved into a larger one related to digital currencies. The business models for
fintech and digital financial services have become a key theme in 2018–19.
Another significant subject that emerged during this time was the regulation of
Fintech and financial services in the digital age. In 2020–21, as digitization
accelerates, the security of financial transactions will become a hot topic, and
regulatory frameworks that support financial stability will become a crucial issue.
Most industries, including financial services, have adopted AI and ML.

We find the following four streams using word clouds, co-occurrence (of
keywords), thematic maps, theme evolution, network analysis, and a full-text
review of curated most influential journal articles:
(1) FinTech and digital financial services regulation
(2) Technology's Role in Financial Services' Digital Transformation Third,
Financial Inclusion via Digital (enabled by mobile money, mobile banking, and
digital finance)

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(3) Digital Financial Inclusion (enabled by mobile money, mobile banking, and
digital finance)
(4) The use of technology in digital financial services (focused area)

Fintech increases credit availability and has a favorable impact on financial

inclusion. Most economies place a high priority on financial inclusion because it
serves as a bridge between economic disparity and financial technology, and
because Fintech works to bridge this gap.
The theme is the fintech era's usage of technology in digital financial services.
Given the recent technology advancements, financial inclusion would be attainable
if consumers adopted the changes when using financial services. Studies on this
subject concentrate on usage levels of intention or uptake of various fintech
services, including mobile payments online banking, digital wallets, and other
financial services. These works mostly concentrate on Asia and the Africa is then
followed by the Middle East.

OBJECTIVE
Understanding the history of knowledge and its current state, creating a thematic
map, and identifying potential future study topics are the goals of this article. We
do this by using a combined lens of bibliometric analysis and theme literature
review to examine the already available material.

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DATA AND TABULATION

Fig1: Evolution of digital financial services over the years

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Framework of theoretical mechanism for digital finance to increase financial efficiency

Mean values for financial efficiency over years

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FINDINGS AND RESULT

With improved communication between banks and

fintech platforms, the following topics could be
Framework researched further: (incorporating the degree of
correlation amongst these entities) varieties of risk
existing regulations' scope likely regulatory
adjustments.
Regulations' effects on digital financial inclusion
the effect of rules on the uptake of digital financial
services (incorporating models based on "trust" and
"security")

GIS and AI are applied to financial decision-making

High accuracy, stability, and robustness of financial
Technology's Effect on models, financial markets, and financial institutions
financial Services are predicted using AI and ML.

Fintech's role in expanding loan availability, as well as

Digital Financial Inclusion
whether excessive borrowing results in delinquencies.
Risks associated with financial inclusion and the
function of fintech (fintech here may inhibit risk by
creating accurate predictive models or increase risk by
making financial data more vulnerable, higher
transaction costs, etc.)

Therefore, our study uses bibliometric analysis and a thematic literature review to
present a comprehensive picture of research on Fintech. It does, however, have
some restrictions. The period of literature considered is from 1984 until 2021.
While there is a small chance of skipping significant publications in the subject
because of the This filter is applicable to the current study's time span. The
keywords chosen were relevant to the subject. being investigated. To get even
more information, one might also consider combining different terms. insights.

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