AI as Driver for Financial Inclusion in Jordan: An Academic Perspective

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The opinions expressed in this article are those of the author and do not necessarily reflect those of Al-Fanar Media).

In an era of accelerating digital transformation, technology is no longer merely a tool for entertainment or efficiency, but a key driver of social justice and economic empowerment.

Financial inclusion stands out as one of the most prominent dimensions of this transformation.

Financial inclusion involves enabling all segments of society—particularly marginalised groups such as women, youth, and low-income individuals—to access safe and affordable financial services, including bank accounts, online payment systems, financing, and insurance. These services not only help improve quality of life but also strengthen financial stability and promote sustainable economic growth.

In Jordan, where estimates suggest that nearly half of the population does not have a bank account, smart technologiesled by artificial intelligence (AI) present a strategic opportunity to close the gap in access to financial services.

Artificial intelligence represents a technological revolution capable of reshaping the economic landscape through intelligent systems that learn from data, make complex decisions, and process language and information in ways that mimic human intelligence. Its applications are spreading across diverse sectors, such as health, education, and industry, and have reached the financial sector, which is undergoing a profound transformation as a result.

Using AI applications to close the gap in access to financial services is not a technological luxury, but rather an effective tool for advancing broader financial and economic justice, and for promoting financial inclusion as a developmental driver capable of making a tangible difference in the lives of individuals and communities.

AI Opportunities in the Financial Sector

Artificial intelligence is opening new horizons for banks and fintech companies to deliver secure, flexible, and personalised digital services, even to groups historically excluded from the traditional financial system, such as youth, women, and refugees. Advanced solutions, including predictive analytics, non-traditional data–driven credit scoring, and fraud detection systems, can help reduce risks while expanding the reach of financial services to a broader beneficiary base.

In Jordan, several successful initiatives have emerged in this field, notably companies such as MadfoatCom, Dinarak, and Liwwa, which have accelerated the digitisation of financial transactions and provided accessible solutions for low-income segments. Digital wallets have also seen remarkable growth, with digital transactions more than tripling in recent years, according to JoPACC, the Jordan Payments and Clearing Company.

Digital wallets, also known as mobile wallets or e-wallets, are applications or online platforms that store and manage money that users can access on smartphones or other electronic devices. They allow users to make payments, transfer funds, and receive money easily and securely, without requiring a traditional bank account. As such, they are a vital tool for advancing financial inclusion, particularly in communities with limited or no banking infrastructure.

AI as Driver for Financial Inclusion in Jordan: An Academic Perspective
Figure 1. Active Users of Digital Wallets in Jordan (2019–2024)

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Challenges Remain

Despite notable advancements, significant obstacles to digital financial inclusion in Jordan persist. Chief among them are weak infrastructure in rural and remote areas, along with low levels of financial and digital literacy among large segments of the population. Additionally, the business environment requires legislative updates to keep pace with the rapid evolution of AI and financial technology.

Addressing these issues calls for a stronger partnership between the government and the private sector to develop flexible regulatory frameworks that foster innovation while safeguarding users’ rights. A positive step in this direction came in 2018, when the Central Bank of Jordan launched the Regulatory Sandbox—a controlled legal environment that allows companies to experiment with digital financial services under supervision—signalling a growing openness to innovation.

Table 1. Examples of Public-Private Partnership Initiatives in Fintech (Jordan and Selected Countries)

Country Initiative/Project Type of Partnership Impact on Financial Inclusion
Jordan FinTech Sandbox Platform–Central Bank of Jordan;  FinTech Regulatory Sandbox (JoRegBox) Regulatory/supervisory Facilitates the experience of innovative financial services
U.A.E. Dubai International Financial Centre (DIFC);  FinTech Hive Legislative environment,  startups Attracts investments and empowers fintechs
Egypt Nile Pioneers Initiative–Central Bank of Egypt;  Fintech and Industrial Innovation Incubators Government, universities, banks Supports financial entrepreneurship
Singapore MAS Innovation Lab–Monetary Authority of Singapore;  MAS Innovation Lab Government, financial sector Develops AI technologies in finance
United Kingdom FCA Regulatory Sandbox–U.K. Financial Conduct Authority; U.K. Regulatory Sandbox for FinTech (FCA Sandbox) Regulatory sandbox Fosters innovation and reduces barriers to market entry

This table presents examples of public–private partnership initiatives in the fintech sector in Jordan and several other countries. These initiatives include regulatory frameworks, innovation incubators, and regulatory sandboxes, all of which contribute directly to advancing financial inclusion and fostering innovation in financial services.

Figure 2. Digital Transformation and Financial Inclusion Indicators in Jordan (2018–2022)

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Startup funding extended beyond fintech to include various sectors. Nevertheless, fintech was a prominent area, accounting for about one-tenth of total funding and 12 percent of the number of deals between 2018 and 2022.

Role of Universities and Education

Jordan’s universities are swiftly integrating AI and financial technology into their academic programmes, aiming to graduate national talent equipped to lead the digital transformation.

Leading institutions such as the University of Jordan, Jordan University of Science and Technology, and Princess Sumaya University for Technology have introduced master’s programmes and applied courses in AI and fintech. These initiatives are developed in collaboration with financial institutions like the Central Bank of Jordan and local and regional technology companies. This approach seeks to strengthen the connection between academia and market needs, preparing graduates to become drivers of digital innovation.

Jordan as an Innovation Hub

Jordan holds a genuine opportunity to become a regional hub for financial technology, supported by its strategic geographic location and political stability. This potential is driven by increasing innovation within the business sector, marked by startups like MadfoatCom and Dinarak, which provide pioneering online payment solutions. Initiatives such as the Central Bank’s Regulatory Sandbox and business incubators like Oasis500, combined with the government’s digital transformation efforts, are streamlining financial and administrative transactions.

However, realising this vision requires clear policies, investment in digital infrastructure, and incentives that foster innovation and facilitate financing for small and medium-sized enterprises (SMEs)—the backbone of the national economy.

In today’s fast-paced technological era, AI offers Jordan more than functionality—it presents a historic chance to transform its economic and social future. Will the kingdom seize this opportunity to become a leader in innovation and smart finance, or will it cede the field to others who move first? The future depends on the decisions made today.

Rasha Istaiteyeh is an associate professor in the Department of Economics at the Faculty of Business at the Hashemite University, in Jordan. You can contact her at  ristaiteyeh@hu.edu.jo. 

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