Human-Centric Technological Readiness and FinTech-Driven Financial Transformation in the MENA Region: The Moderating Role of Governance Quality
DOI:
https://doi.org/10.32350/jfar.82.02Keywords:
digital finance, financial inclusion, financial innovation, fintech, governance quality, MENA region, panel data analysis, technological readiness, transformative financeAbstract
The rapid expansion of digital technologies and financial innovation has transformed financial systems worldwide, particularly in emerging economies seeking to improve financial inclusion and sustainable development. This study examines the relationship between human-centric technological readiness, financial innovation, governance quality, and transformative finance in the Middle East and North Africa (MENA) region. Using panel data from fifteen MENA countries covering the period 2015–2025, the study employs panel regression technique to analyze how technological capabilities and institutional factors influence financial transformation. The findings indicate that human-centric technological readiness and financial innovation have a significant positive impact on transformative finance, suggesting that countries with stronger digital capabilities and more developed fintech ecosystems are better positioned to expand financial inclusion and improve financial system efficiency. Governance quality also positively contributes to financial transformation by providing regulatory stability and institutional support for financial innovation. However, the interaction between technological readiness and governance quality reveals a moderating effect, indicating that stronger regulatory frameworks may influence the pace of technological experimentation in financial markets. In addition, digital infrastructure significantly supports the development of digital financial ecosystems. The study highlights the importance of integrating technological development, financial innovation, and effective governance to promote inclusive and sustainable financial systems in the MENA region.
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