Crowdfunding platforms and financial inclusion: Fulfilled promise or disillusion?

Fozan Fareed*, Jordana Viotto

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

Pro-social crowdfunding platforms offer a promising path for financial inclusion in developing countries. The literature on crowdfunding lacks evidence of whether and to what extent pro-social crowdfunding platforms fulfil this promise. Employing different techniques to tackle endogeneity, we show that, while crowdfunding platforms expand access to capital to more borrowers, the service to more vulnerable individuals does not improve. We also find that interest rates remain unchanged. Our results allow us to provide recommendations to policymakers regarding the connection between digital technologies like crowdfunding platforms and financial inclusion.
Original languageEnglish
Article number106642
Pages (from-to)1-7
Number of pages7
JournalFinance Research Letters
Volume73
Early online date10 Dec 2024
DOIs
Publication statusE-pub ahead of print - 10 Dec 2024

Keywords / Materials (for Non-textual outputs)

  • FinTech
  • crowdfunding
  • Kiva
  • microfinance
  • MFIs
  • microfinance institutions

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