JJEM: Special Edition 4 (May 2025)
JJEM: Special Edition 4 (May 2025)
2025-05-31
AI-Driven Fintech: Building Sustainable and Inclusive Retail Markets For Tomorrow
Vidyashree, Dr Sharma K R S, Dr Mahesh K M
Introduction: The rapid evolution of financial technology (fintech) has transformed industries across the globe, with artificial intelligence (AI) playing a critical role in enabling faster, more efficient, and customer-centric solutions. In the retail sector, AI-driven fintech solutions are unlocking opportunities for businesses to address not only operational efficiency but also environmental sustainability and social inclusion. As consumers demand more transparency and responsibility from brands, the integration of AI and fintech into retail offers a pathway toward achieving a more sustainable, equitable future. According to the World Bank's Global Findex Database 2023, AI-powered fintech solutions have helped increase global financial inclusion from 69% in 2021 to 76% in 2023, bringing an additional 1.4 billion people into the formal financial system. The Bank for International Settlements (BIS, 2024) reports that AI-enabled fintech lending platforms have grown by 235% since 2020, processing over $580 billion in loans globally in 2023. McKinsey's Global Banking Report (2023) indicates that AI implementation in financial services reduced operational costs by 32% and increased customer satisfaction scores by 47% between 2021-2023. Purpose: Research article explores the transformative role of AI-driven fintech in fostering sustainable and inclusive retail markets. With retail businesses increasingly adopting fintech solutions, particularly in payment systems and credit offerings there's a unique opportunity to align these innovations with sustainability and inclusivity goals. Research Gap and Objectives: Fintech and AI independently, there is limited research focused on the convergence of AI-driven fintech specifically in retail and its impacts on sustainability and inclusivity. This study seeks to fill this gap by exploring how fintech applications in retail can be strategically leveraged to foster environmentally and socially responsible practices. The research objectives are analyze how AI-enhanced fintech applications support economic inclusion in the retail sector. And to identify the challenges and barriers of implementing sustainable fintech solutions in retail. Method: A combination of qualitative interviews with industry experts (Videos) and quantitative analysis of fintech adoption data in retail, this study identifies the main drivers and barriers to implementing sustainable fintech solutions in the sector. Results: The study finds that AI-driven fintech applications in retail are increasingly facilitating green financing, ethical consumer behaviour, and personalized services that promote inclusivity. Discussions: The research article discussed barriers challenges and barriers of implementing sustainable fintech solutions in retail and AI - driven fintech practices. Originality: Research provides a unique perspective by intersecting fintech, AI, sustainability, and inclusion within the retail context. Formulated conceptual model on Sustainable financial ecosystem
Fintech, AI, Sustainability, Inclusive