THE ROLE OF TELECOMMUNICATION SECTORS IN FINTECH ADOPTION IN AFGHANISTAN’S BANKING SECTOR
DOI:
https://doi.org/10.55197/qjssh.v7i2.1142Keywords:
Afghanistan, telecoms, FinTech, banking sector Afghanistan, mobile money, regulationAbstract
Telecom infrastructure and financial technology (FinTech) are jointly shaping the future of banking and financial inclusion worldwide. FinTech, namely mobile and digital payments, offers a potential route to greater inclusion and efficiency in unstable environments like Afghanistan, where political instability, restricted banking access, and low literacy are common. However, dependable telecommunications networks, supportive laws, and public confidence are essential for the long-term adoption of FinTech. This article examines Afghanistan's banking and telecommunications environment, highlighting its unique opportunities and challenges. The example of Malaysia, a nation that has quickly grown digital finance through coordinated telecommunications investments, open rules, and inclusion initiatives, is then used to make comparisons. We examine the interdependence between telecoms and fintech in Afghanistan, highlighting potential opportunities (such as digital remittances, mobile money, and migrant finance) and identifying constraints (such as connectivity and regulatory gaps, and low trust) based on the literature and current information. The article concludes with evidence-based suggestions for Afghanistan, including targeted literacy initiatives, modernizing regulations (fintech sandbox, e-money licensing), integrating digital identity/customer identification, strategic telecom investment (ubiquitous broadband), and consumer protection measures. The study concludes that Afghanistan must adopt a coordinated "digital infrastructure, policy-trust" strategy, as exemplified by Malaysia, to close the financial inclusion gap and build a more robust banking industry.
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