Financial Inclusion in Smart Cities in the European Union: The Role of Marketplaces and Financial Technology

This study investigates the role of marketplaces and financial technology (fintech) in enhancing financial inclusion within the smart cities of the European Union (EU). Fintech, defined as the convergence of finance and technology, has been identified as a significant factor influencing financial inclusion. The research aims to determine how fintech can support the sustainable and balanced development goals set by the United Nations Sustainable Development Goals (UN SDGs) through the development of technology infrastructure within the smart city. The literature review provides a foundational understanding of financial inclusion and smart cities. This is followed by a comparative analysis using secondary data to examine the importance of fintech for existing smart cities in the EU. Our findings indicate that fintech substantially enhances financial inclusion in these urban settings. The social impacts observed include: reduced poverty levels, improved financial literacy, expanded access to financial services, and increased interactions between individuals and financial service providers. This study contributes to a deeper understanding of the relationship between fintech, marketplaces, and financial inclusion in the context of the EU’s smart cities.