Inclusive Disruption

Abstract

This chapter discusses the important socioeconomic role of financial technologies in the emerging market which is Russia today. While the issues of financial inclusion are of recognized importance for the developing markets, until recently they were seen largely as areas of affirmative regulatory action, not of competitive play by private market actors. However, the advent of fintech companies changes the paradigm. Many fintech companies in Russia view the gaps in financial inclusion as attractive market niches and formulate relevant consumer offers. This chapter reviews their strategic approaches based on the study of five business cases, and introduces an analytical matrix mapping the approaches to existing inclusivity gaps. The model strengthens the existing policy aimed at developing financial inclusion as it allows a targeted cost-benefit analysis of market players' actions. As Russia demonstrates many of the financial inclusivity challenges seen in other countries, the findings of this chapter have certain applicability in the context of both emerging and advanced economies.