Comparative Analysis of Mobile Finance Markets in SAARC Nations: Drivers of Financial Inclusion

The study was conducted at the time of increasing demand to provide insight into the role of financial technologies in inclusive economic growth among the South Asian economies. Even though there is a rapid growth in mobile financial services in the region, there is a dearth of comparative evidence on the role of such innovations in promoting the financial inclusion phenomenon in various countries situated in the SAARC region. Filling this gap, the study offers a timely insight into policies to be improved by policymakers, regulators, and financial institutions to improve digital finance strategies and enhance equitable access to financial systems. The paper analyses the mobile finance markets as a proportion of the total economy among SAARC countries, focusing on factors affecting financial inclusion. The data has been collected from WDI from 2012 to 2022, demonstrating one of the latest studies focused on SAARC nations regarding MFS and Financial inclusions. After cleaning the data, the indicators from Bangladesh, India, and Pakistan were retained to maintain the accuracy of the results derived from this study. Five indicators, such as financial inclusion, mobile money transactions, GDP growth rate, individuals using the internet, and the number of mobile cellular subscriptions, were adopted from earlier research to compare the MFS market. This study shows that MFS markets have grown significantly over the past decade. However, the growth of a few MFS indicators has been steady since 2020 due to COVID-19 and other global issues. The results of panel regression revealed that mobile money transactions and mobile cellular subscriptions have a significance in improving financial inclusion in SAARC nations. Therefore, this research offers significant perspectives for authorities and mobile financial service providers to use effective mobile money methods in order to attain higher levels of financial inclusion in SAARC countries.