Financial Inclusion and Digital Banking: Current Trends and Future Directions

Purpose This systematic review investigates the role of digital banking technologies, such as mobile banking, digital wallets, artificial intelligence (AI)-powered credit scoring, and blockchain technology in promoting financial inclusion from 2010 to 2024. The objective is to assess the impacts of these technologies on enhancing financial access, particularly for unbanked and underserved populations. Methods Inclusion criteria focused on peer-reviewed studies published between 2010 and 2024 that addressed the effects of digital banking technologies on financial inclusion. The studies were required to be in English and include empirical research, case studies, or systematic reviews. Non-peer-reviewed articles, studies unrelated to digital banking, and duplicates were excluded. Searches were conducted across multiple databases, including PubMed, Scopus, Web of Science, Google Scholar, and JSTOR, using keywords such as “unbanked populations,” “fintech,” “blockchain in finance,” “AI in banking,” “digital banking,” and “financial inclusion.” The risk of bias was assessed based on the quality and relevance of the study design. Out of 150 initially identified studies, 40 were included after title, abstract, and full-text screening. Main Findings The synthesis of 40 studies revealed that mobile banking has significantly increased financial access, especially in regions such as sub-Saharan Africa, enhancing savings and money transfer processes. Digital wallets have also improved accessibility, although concerns about data security and privacy persist. AI-driven credit scoring models have democratized access to credit, especially for individuals lacking traditional credit histories. Additionally, blockchain shows promise in improving transaction transparency and reducing costs, but it faces regulatory hurdles. Conclusion For digital banking technologies to effectively promote financial inclusion, robust regulatory frameworks, enhanced digital literacy, and sustainable digital infrastructure are critical. These advancements are necessary to ensure the widespread and equitable adoption of digital financial services.