Role of FinTech on financial inclusion in rural Thailand : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University

Abstract

Digitalisation has become a key driver of financial inclusion, particularly for low-income and remote households. In Thailand, the government’s National e-Payment Master Plan and related policies have accelerated the shift from branch-based transactions to online financial services, encouraging greater participation in the formal financial system. Despite these advances, many rural dwellers remain financially excluded. This study investigates the factors influencing FinTech adoption for financial inclusion and examines the effect of FinTech on financial inclusion. This study also examines the relationships between FinTech adoption, financial inclusion, poverty, and income inequality. Primary data were collected from 632 respondents across the South and Northeast regions of Thailand. Confirmatory Factor Analysis and Structural Equation Modelling were used to identify determinants of FinTech adoption, and binary logistic regression was used to analyse their effects on financial inclusion. Ordinary Least Squares regression and quantile regression were employed to examine the relationships between FinTech adoption, financial inclusion, poverty, and income inequality. The findings reveal that FinTech adoption is primarily driven by behavioural intention and government support, whereas digital financial literacy has no direct effect. Behavioural intention is influenced by attitude, perceived usefulness, perceived ease of use, performance expectancy, effort expectancy, facilitating conditions, habit, and perceived risk. Additionally, perceived usefulness and ease of use are influenced by optimism and innovativeness, whereas discomfort influences only perceived ease of use. Our empirical results confirm that mobile banking significantly improves financial inclusion, particularly account ownership, savings, borrowing, and money transfers. FinTech adoption has both direct and indirect positive effects on per capita monthly consumption expenditure and income, thereby contributing to poverty reduction. Our quantile regression results indicate that FinTech adoption increases income across all income distribution quantiles, suggesting its potential to reduce inequality. The indirect effects of mobile banking on income inequality are mediated through financial inclusion indicators such as account ownership, savings, and money transfers. However, mobile banking services appear to enhance access to formal credit primarily for high-income households. Overall, the study contributes to the literature on digital financial inclusion and offers practical implications for policymakers and private stakeholders, highlighting FinTech as a mechanism for rural financial inclusion that leads to poverty alleviation and reduced income inequality.