Toward Fintech Adoption Framework for Developing Countries (India) - A Literature Review Based on the Stakeholder Perspective

Abstract

Financial technology (fintech) has emerged as a transformative force in developing economies, driving financial inclusion and economic growth. India, with its robust digital initiatives such as Unified Payments Interface (UPI) and Digital India, has made remarkable progress in building a vibrant fintech ecosystem. However, challenges such as regulatory ambiguities, digital infrastructure gaps, low financial literacy, and trust deficits continue to hinder its potential for inclusive and sustainable growth. This study examines India’s fintech landscape from a stakeholder perspective, identifying the roles of key players - government, financial institutions, technology providers, and consumers in shaping the ecosystem. Additionally, it draws lessons from other developing nations, such as Indonesia, Kenya, and Nigeria, to propose actionable strategies for enhancing fintech adoption in India. A comprehensive framework for fintech adoption is proposed, focusing on five key pillars: policy and regulation, infrastructure development, stakeholder collaboration, education and awareness, and localized financial inclusion strategies. The study emphasizes the importance of adaptive regulations, scalable infrastructure, public-private partnerships, and targeted consumer education in addressing existing barriers. Insights from Indonesia’s localized solutions, Kenya’s mobile-based innovations, and Nigeria’s agent banking networks provide practical approaches for India to bridge its rural-urban divide and reach underserved populations. India’s phased fintech roadmap: pilot innovation & literacy, build infrastructure & partnerships, and strengthen regulation for sustainable, inclusive digital financial growth.