Inclusive Finance Trends in the Age of Digital Technologies and Innovations: An Empirical Study Based on Panel Data Analysis

ABSTRACT Financial inclusion has recently been identified as one of the key strategies for improving economic development (World Development Report, 2022). Governments around the world have continued to support the development of financial systems and payment facilities. Within this context, the objective of this article is to investigate the impact of digital technologies on financial inclusion using Gharbi and Kammoun's Financial Inclusion Index (2023). To do this, the authors applied linear regressions with panel data using a robust data set comprising World Development Indicators, and the Financial Access Survey from the International Monetary Fund (IMF) from a panel of 91 countries selected based on data availability over the period 2004–2020. The results show that digital assets and digital use positively affect financial inclusion within the context of this study. Digital technologies have the potential to overcome the barriers that prevent financially excluded adults from accessing financial services. Our results are robust, across different indicators and estimation methods. Our article adds to the existing literature by helping future researchers to better assess the possibilities for developing an inclusive financial system in a world where digital technologies play a dominant role. To the best of the authors’ knowledge, this study is unique in that it uses two dimensions of digital technologies, that is, digital assets and digital use. Thus, the variables are unique and will add value to the literature.