FINANCIAL TECHNOLOGY AS A MEANS TO REDUCE ABSOLUTE POVERTY

Abstract Financial technology (FinTech) drives major changes worldwide in financial operations especially in low-income countries that abandoned traditional banking services to the poor. FinTech which merges technology within financial services products allows organizations to bring improved delivery systems to consumers thereby creating new poverty reduction solutions for the World Bank-defined absolute poverty standard of $2.15 per day. Through digital tools encompassing mobile banking and blockchain systems along with AI-based credit evaluation FinTech carries out financial inclusion for underserved groups who gain protected access to saving money and loans and investment possibilities. Absolute poverty relief through FinTech stems mainly from its capability to supply microloans and mobile money services. M-Pesa's mobile payment system in Kenya proved that digital financial methods create poverty alleviation for families when used for simplified money transfer operations at lower expenses. FinTech platforms now link to biometric ID systems which allows undocumented people to access financial products thus preventing their continuous exclusion from the market. The development of entrepreneurship serves as a poverty reduction method through the support of FinTech platforms. The connection of low-scale vendors to credit services together with peer-to-peer financing options enables people to earn income while funding education and improving medical wellbeing. Despite progress there are three obstacles to tackle namely digital literacy problems combined with cyber dangers and inconsistent regulatory standards which might result in increased social gaps unless proper risk management is adopted. FinTech holds significant power to assist poverty reduction strategies despite not being an overall solution to global economic needs. Responsible deployment of FinTech technology enables social bridges to form between economic divisions so the world's poorest groups gain financial independence and enhance their life quality.