Authors: Vanishree G M, Hema Priyadharshini M
Abstract: Digital banking has proved to be a powerful transformational tool for achieving financial inclusion, especially in disadvantaged and distant communities. This research looks into the developments within the field of digital banking and its ability to solve the problem of financial exclusion among developing and emerging economies. The research uses an extensive review of the existing literature and empirical evidence to highlight current trends such as mobile money expansion, use of AI technologies and application of blockchain. However, there are several challenges that include lack of necessary digital infrastructure, financial illiteracy, cyber-security issues and gender inequality. This study proposes an innovative methodological approach that combines quantitative panel analysis and Digital Financial Inclusion Index to evaluate the adoption of digital banking technology in 25 emerging economies. The results show a significant and positive relationship between the rate of adoption of digital banking and financial inclusion measures, which is moderated by internet usage and education levels.
DOI: http://doi.org/10.5281/zenodo.23099875
