Integrating financial literacy, regulatory technology, and decentralized finance: A new paradigm in Fintech evolution

Abstract

This study investigates the implications of the interaction of financial literacy, regulatory technology, and decentralized finance applications for financial sector development. A two-step analytical regression approach on EViews 10 was used, which performs a one-factor analysis for each variable to identify the individual impact of each factor. A linear FMOLS approach was used to evaluate the cooperative effect of integration. The methodology was implemented on a dataset comprising 2,880 observations from 23 financial institutions in Jordan.The findings support the hypothesized dynamic interrelations between the essential Fintech factors relevant to the sustainable development of the financial sector, including significant and insignificant factors with the impact of inflation, which provides an adequate understanding of Fintech’s evolution. Additionally, the outcomes consider post-2017 regulatory changes that reflect the role of supervision and regulation for the financial sector’s flexibility and efficiency. Therefore, the results reveal the essential contribution of integrating decentralized finance applications, financial literacy, and regulatory technology to the development of Jordan’s financial sector. Financial literacy serves as a facilitator, regulatory technology is a compliance enabler, and decentralized finance applications are driving forces of innovation and financial inclusion, ensuring a robust and sustainable financial ecosystem. It is shown that the interaction of factors forces the sector’s development, reflecting the world’s trend in digital inclusion and viable financial development.

Governmental management of social housing as an element of state social policy: Bibliometric analysis

“…Improper management of social housing can lead to distrust in the entire financial sector of the state. The financial literacy of the population itself affects its development and inclusion in state activities by influencing economic participation, fostering responsible financial behaviors, and ultimately contributing to overall societal well-being and stability (Didenko et al, 2023;Prabhakaran & Mynavathi, 2023;Mustafa, 2024). A financially knowledgeable person will be able to properly manage his finances and, in the long run, manage them for business development, thereby contributing to economic growth and stability on both individual and societal levels.…”