Published Paper Details:

Abstract The rapid expansion of financial technology (FinTech) has reshaped the global financial ecosystem by redefining access, efficiency, and risk dynamics within the banking sector. This study investigates the impact of FinTech innovation on financial inclusion and banking stability, focusing on how digital financial services, mobile banking, and alternative lending platforms influence both access to finance and systemic resilience. Using a panel dataset of developing and emerging economies from 2010 to 2024, the research employs dynamic panel regression and structural equation modeling to capture both direct and mediating effects. The findings reveal that FinTech adoption significantly enhances financial inclusion by lowering transaction costs, expanding credit access, and improving service delivery in underserved regions. However, excessive reliance on technology-driven financial intermediation may expose the banking sector to new forms of operational and cyber risks, thereby influencing stability. The results suggest a non-linear relationship where moderate levels of FinTech development promote stability through financial deepening, while excessive innovation without robust regulatory frameworks may heighten systemic vulnerabilities. Policy implications emphasize the need for adaptive regulation, cross-sector collaboration, and investment in digital infrastructure to balance innovation with prudential oversight. This research contributes to the growing literature on digital finance by providing empirical evidence and policy insights for sustainable FinTech-driven financial ecosystems.