Exploring the nexus between financial inclusion, financial efficiency, and financial sustainability in the global financial system

Abstract This research examines the influence exerted by financial inclusion (FI) to fostering financial efficiency (FE) and financial sustainability (FS), while doing a comparison of the two developed and developing economies. It examines how mobile banking and Fintech can lead to the improvement of such results due to technological developments. The study examines 26 FTSE-listed countries from 2004 to 2024 using PCA, Z-score and min–max normalization, and OLS regression. Results indicate that FI significantly enhances FE, particularly in developed economies, while its impact on FS depends on institutional quality and regulatory adherence. Technological innovations, including mobile banking and Fintech, support efficiency gains but require robust institutional frameworks to ensure long-term financial sustainability. The study has significant contributions in ascertaining the influence of financial inclusion on the performance of a financial system, and the insights obtained by the study used by policymakers to devise methods of realizing financial inclusion and sustainability. The study stresses the need to strike the balance between technological advancement and establishment of resilient institutional models. There is a need to conduct future research in the field of financial inclusion regional disparities and environmental as well as social impacts of financial inclusion.