Impact of FinTech on Banking Efficiency and Financial Inclusion in Egypt: Analytical View

Abstract

Objective: The objective of this study is to analyze the impact of Financial Technology (FinTech) on banking efficiency and financial inclusion in Egypt, focusing on digital financial services within the banking sector. Theoretical framework: The theoretical framework is based on financial intermediation theory and technological innovation theory, explaining how FinTech reduces transaction costs and improves access to financial services. Literature review: The literature review draws on studies published by the World Bank, the International Monetary Fund, and the OECD, which emphasize FinTech’s role in enhancing banking efficiency and promoting financial inclusion in emerging economies. Methods: This study adopts an analytical approach based on secondary data from reports issued by the Central Bank of Egypt and international financial institutions, without using econometric modeling. Results: The results indicate that FinTech adoption improves banking efficiency by reducing operational costs, increasing service speed, and expanding access to formal financial services for underserved populations. Implications: The findings highlight the need for supportive regulatory frameworks, improved digital infrastructure, and enhanced financial literacy to maximize FinTech benefits in Egypt. Novelty: This study provides an original analytical perspective by jointly examining banking efficiency and financial inclusion in the Egyptian banking sector. It contributes to existing literature by offering policy-relevant insights for regulators, banks, and decision-makers seeking inclusive, efficient, and sustainable digital banking development in Egypt under current economic and technological conditions facing emerging markets today globally in practice.