Adoption of FinTech Solutions in Emerging Markets: Opportunities and Regulatory Challenges

Abstract

Purpose – This study aims to investigate the adoption of FinTech solutions in emerging markets, emphasizing both the transformative opportunities presented by financial technology and the critical regulatory challenges that influence its integration. The research seeks to bridge the gap between technological innovation and regulatory frameworks to foster responsible and sustainable FinTech growth.

Design/methodology/approach – The research employs a qualitative-quantitative mixed-method approach, combining a comprehensive review of the latest international literature with primary data from surveys and interviews involving key stakeholders, including FinTech firms, regulators, and consumers in selected emerging markets. Comparative analysis is used to highlight similarities and differences in adoption patterns and regulatory responses across regions.

Findings – Findings reveal that FinTech adoption in emerging markets is driven by improved financial inclusion, increased efficiency, and expanding digital infrastructure. However, significant regulatory hurdles remain, such as fragmented legal standards, limited supervisory capacity, and challenges related to cybersecurity and consumer protection. Successful regulatory innovations—including sandboxes and public-private collaborations—are helping mitigate some of these issues, but implementation varies.

Research limitations/implications – The study's limitations include potential biases in stakeholder interviews and a focus on selected emerging markets, which may limit generalizability. Future research could expand to additional regions or explore longitudinal changes as regulatory ecosystems mature. Policymakers and industry leaders should consider adaptable frameworks that balance innovation with risk mitigation.

Originality/value – This research expands current knowledge by providing a holistic analysis of FinTech adoption in diverse emerging market contexts, highlighting innovative regulatory practices and real-world challenges. The paper offers actionable insights for governments, FinTech entrepreneurs, and global investors looking to harness FinTech for inclusive and robust financial ecosystems.