Fintech and Financial Inclusion in Saudi Arabia

(Pages 857-866)

Shoaib Khan1,* and Fahad Abdallah F. Alhadi2
1Department of Economics and Finance, College of Business Administration, University of Ha’il, Ha’il 2440, Saudi Arabia.
2Department of Mathematics, College of Science, University of Ha’il, Ha’il 2440, Saudi Arabia.


The study explores the determinants of financial inclusion, barriers to financial inclusion, and the motivation for saving and credit through the formal financial sector. It further points out how Fintech could be used to enhance financial inclusion. The study uses the World Bank Global Findex Database 2017 survey. The survey is based on the feedback of more than 1000 individual participants. The probit estimation technique is employed to achieve the study objectives. Being male, educated, and rich are financially inclusive, especially high income and old age group. Financial inclusion has not been successful to eradicate inequality among various groups. Among individual characteristics, education significantly reduces the barriers to financial inclusion, the females are less motivated to save or borrow from financial institutions. Young individuals are likely to borrow for the purchase of a house or land but not for business. Elderly people are motivated to save for their old age. The distance and the cost of formal financial services along with the lack of documentation are the main barriers to financial inclusion. As per our knowledge, it is the first study that explores the various aspects of financial inclusion in the country, along with the review of the Fintech system. And suggesting how the Fintech system could enhance financial inclusion in the country. More comprehensive study including the Fintech variables and comparative studies with other regional economies considering the latest available data is suggested. The findings can help the policymakers, to formulate policies that can enhance financial inclusion through Fintech. The diversification and expansion of financial services could enhance financial inclusion, particularly for businesses at individual levels, and for SMEs. More importantly, it will contribute to achieving the financial sector objectives of Vision 2030.


Financial inclusion, Fintech, Saudi Arabia, Financial sector, Vision 2030.

JEL Classification:

G 23, G53, P 34.

How to Cite:

Shoaib Khan and Fahad Abdallah F. Alhadi. Fintech and Financial Inclusion in Saudi Arabia. [ref]: vol.20.2022. available at:

Licensee REF Press
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