Investigating the Impact of Fintech on Social Welfare in Iran

Document Type : Research Paper

Authors

1 PhD student in Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Mashhad, Iran

2 Assistant Professor, Department of Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Mashhad, Iran

10.30465/jnet.2025.50042.2162

Abstract

A key objective of sustainable development is to mitigate poverty through the enhancement of financial inclusion globally. In Iran, the development of financial technology (fintech) has made significant strides in the past decade and has potential for further growth, fueled by increased access to modern technologies and user readiness to adopt electronic services. Although United Nations reports have underscored fintech's potential to reduce financial exclusion and foster financial inclusion, there remains a lack of consensus regarding its social impacts. This article explores the effect of fintech on social welfare across various provinces in Iran. The research employs a quantile panel regression model to analyze the data, allowing for the identification of potential heterogeneity in social welfare distribution and recognizing how fintech impacts different levels of social welfare. The model's findings indicate that fintech positively and significantly influences social welfare in provinces with higher social welfare levels. As social welfare improves, the impact of fintech intensifies, consequently enhancing overall welfare. In contrast, fintech's influence is not statistically significant in provinces with lower social welfare. Understanding how fintech affects various societal segments at differing welfare levels enables policymakers to develop targeted interventions that maximize its benefits and mitigate adverse consequences.

Keywords

References

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new economy and trad
Volume 19, Issue 64 - Serial Number 64
February 2025
Pages 101-132

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History

  • Receive Date: 17 September 2024
  • Revise Date: 26 October 2024
  • Accept Date: 18 November 2024

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