Exploring the role of digital finance in advancing financial inclusion with challenges and future directions

The current study presents a Systematic Literature Review (SLR) conducted in accordance with the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) guidelines on the role of various digital financing methods in enhancing Financial Inclusion. This study systematically reviews 50 journal articles published in Scopus from 2013 to 2025 using a combination of bibliometric and meta-analytical techniques. The current review highlights the growing adoption of digital financing methods, including credit and debit cards, e-wallets, mobile banking apps, mobile wallets, electronic banking, agent banking, and online banking transfers. The empirical literature has explored the pivotal importance of digital financing methods in achieving financial inclusion in four major themes: (1) Mobile Empowered Financial Inclusion, (2) Digital Financial Services for Financial Inclusion, (3) Fintech-driven Financial Inclusion for Economic Growth, (4) Financial System adoption for Digital Financial Inclusion and its challenges. The study findings revealed that digitalized financing methods have increased financial inclusion by improving their accessibility, availability, and the quality of usage among marginalized communities worldwide. However, existing challenges, such as digital financial illiteracy, regulatory constraints, genderand income-related socio-economic disparities, and inadequate infrastructure, have limited the accessibility of digital financing methods for disadvantaged groups. The review confirms that digital payment methods are a powerful tool for an inclusive financial system only under a supportive policy environment, suitable technological design, and active collaboration among stakeholders such as governments, financial institutions, technology providers, and civil society.