Fintech, the Fourth Industrial Revolution Technologies, Digital Financial Services and the Advancement of the SDGs in Developing Countries

Abstract

Digital financial services are dominating the financial sector. This has been attributed to the growth of fintech and fintech and the Fourth Industrial Revolution technologies such as artificial intelligence, big data, the Internet of Things, blockchain, and cloud computing. Recognizing that technology has a twofold impact that is disruptive and transformative effects, through a systematic review, this paper sought to assess the role of fintech and the fourth industrial revolution in advancing the United Nations 2030 Sustainable Development Goals in developing countries. The results of the review were mixed. While positive contributions such as increased access to financial services, improved risk assessment, access to funding, and saving opportunities all contribute to the achievement of the sustainable development goals, some negative externalities that impede the fruition of the SDGs were equally evident. These negative externalities include increased risks and fraud,  gender divide, digital divide, and overindebtedness. These unfavourable externalities could compromise the attainment of sustainable development goals in developing countries.  This was further compounded by challenges of poor digital infrastructure, extreme poverty, digital illiteracy, and weak regulation in developing countries. Therefore there is a need to strike an equilibrium between the possible positive and negative effects of fintech and the fourth industrial revolution technologies  on the fruition of the sustainable development goals in developing countries.