AN ANALYSIS OF THE IMPACT OF FINANCIAL INCLUSION DETERMINANTS ON POVERTY ALLEVIATION IN SERBIA

In this paper, we examined how financial inclusion affects poverty reduction in the Republic of Serbia. We conducted an analysis based on data collected from the World Bank and IMF databases. Our goal was to examine the level of inclusion in the Republic of Serbia and how determining financial inclusion can support poverty reduction strategies in a developing country. The findings show that increasing the financial inclusion index can significantly contribute to poverty reduction in the Republic of Serbia, especially through mechanisms to improve access to financial services. The paper also presents a comparative perspective with other regions and countries, in order to assess the robustness of the findings and to see a broader picture of the functioning of financial inclusion mechanisms in the fight against poverty and inequality. We have determined that there is a greater need for digital financial channels, that is, it is necessary to force digital financial inclusion as one of the main generators of financial development in modern societies. The data we have processed unequivocally indicate that digital tools and financial products can play an important role in strengthening financial inclusion and the economic empowerment of marginalized groups and groups in rural areas. The findings in this paper are important for decision-making and for creating adequate measures and policies aimed at the financial empowerment of the most vulnerable segments of the population. The paper provides a significant basis for further research that could more precisely measure individual factors of financial inclusion and their contribution to poverty reduction.