AI-Driven FinTech Solutions for Financial Inclusion: A Study on MSME Sector Empowerment

This study explores the transformative impact of AI-driven FinTech solutions on financial inclusion, with a specific focus on the empowerment of Micro, Small, and Medium Enterprises (MSMEs). Financial inclusion is crucial for economic growth, particularly in developing regions where MSMEs play a pivotal role in employment and innovation but often face barriers in accessing financial services. AI technologies, such as machine learning and data analytics, are revolutionizing the FinTech landscape by providing tailored financial products and services that address the unique needs of MSMEs. The research examines how AI-driven FinTech platforms enhance credit assessment, risk management, and customer service for MSMEs. By leveraging alternative data sources and sophisticated algorithms, these platforms offer more accurate credit scoring and personalized financial solutions, thus overcoming traditional barriers related to limited credit histories and high transaction costs. Additionally, AI facilitates improved financial management and decision-making for MSMEs through automated processes and predictive analytics.The study highlights several key benefits of AI-driven FinTech solutions, including increased access to affordable credit, enhanced operational efficiency, and the expansion of financial services into underserved regions. However, it also addresses challenges such as data privacy concerns, regulatory issues, and the need for digital literacy among MSME owners.