Role of Digital Transformation in Closing the Financial Inclusion Disparities in West African Economic and Monetary Union and the Covid‐19 Effect

ABSTRACT Despite significant advancements, disparities in access to financial services persist across developing nations. The Covid‐19 pandemic has significantly influenced the adoption of digital finance, particularly in West African Economic and Monetary Union countries. Using World Bank Global Findex data (2017 and 2021), this study employs heteroscedastic binary choice and difference‐in‐differences methodologies to evaluate the impact of digital finance on financial inclusion, considering factors such as gender, age, income, location and the pandemic. The findings indicate that while overall financial inclusion experienced a decline, the increased adoption of digital finance mitigated this trend, suggesting the importance of system interoperability.