Impact of Agricultural Finance Technologies (Agri-Fintech) on the Agricultural Sector
Chapter from the book:
Yücel,
R.
&
Ayyıldız,
Y.
&
Er,
H.
(eds.)
2023.
Innovations that Digitalization Brings to the Finance Sector.
Synopsis
Agriculture is one of the most critical sectors for a sustainable future. The recent global crises have once again demonstrated the importance of the agricultural sector for countries. Digitalization and technological innovations are integrated in the agricultural sector later than in other sectors due to the unique character of the sector. With the desire of Financial Technologies (Fintech) to operate in the agricultural sector, Agricultural Finance Technologies (Agri-Fintech) have started to find a place in the sector in different areas and with different applications. In this study, the impact of Agri-Fintechs on the sector is evaluated under the headings of financial technologies in agriculture (Agri-Fintech), impact of the financial sector on digitalization of agriculture, financial impact of digitalization in agriculture, and ımpact of agricultural finance technologies on climate change and global food crisis. Agri-Fintechs improve financial services in the agricultural sector and provide financing convenience and management to the agricultural sector on online platforms. There are many Fintech activities in the agricultural sector, especially in financing, insurance services, and e-commerce platforms. Agri-fintech ensures the traceability of agricultural processes with technological tools, produces fast solutions by making faster creditworthiness predictions, and offers sector-specific solutions. It is seen that agricultural enterprises that want to access finance have started to digitalize. Digitalization in the agricultural sector increases the monitoring and forecasting possibilities of financial institutions, which in turn returns to the sector as economic input and financial solutions. Digitalization in agriculture and financial technologies in the agricultural sector are considered processes supporting each other. Technological solutions and digitalization in the agricultural sector positively affect food safety and sustainability and support sustainable and manageable agricultural processes.