The Role of Socioeconomic Status in FinTech Adoption and Financial Access Examining the Mediating Effect of Socioeconomic Disparities

Abstract

Financial technology (FinTech) has revolutionized access to financial services, particularly in developing economies. However, disparities in socioeconomic status (SES) continue to shape individuals' ability to engage with digital financial solutions. This study investigates the relationship between FinTech adoption and financial access, with a specific focus on the mediating role of SES. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study analyzes survey data to examine the impact of income, education, and employment status on financial inclusion through digital platforms. The findings reveal that FinTech adoption significantly enhances financial access, but SES plays a crucial mediating role in determining the extent of its benefits. Higher-income, well-educated individuals are more likely to engage with advanced FinTech solutions, while lower-income individuals face barriers such as limited digital literacy, lack of internet access, and distrust in financial institutions. The study highlights policy implications, emphasizing the need for financial literacy programs, digital infrastructure expansion, and inclusive regulatory frameworks to bridge the digital divide. These insights contribute to the growing discourse on financial inclusion by demonstrating that while FinTech holds promise in expanding access to financial services, its full potential remains unevenly distributed across socioeconomic groups. Addressing these challenges is essential for fostering an inclusive and equitable financial ecosystem in emerging markets.