DIGITAL FINANCIAL INCLUSION: A PATHWAY TO POVERTY ALLEVIATION IN DEVELOPING COUNTRIES
Abstract
Digital financial inclusion, encompassing the spread of digital financial services like mobile money and online banking, has emerged as a powerful tool for poverty alleviation and sustainable development. This paper explores the transformative potential of digital financial inclusion in tackling poverty by providing accessible, affordable, and secure financial services to underserved populations. This study utilizes content analysis by using secondary data to examine the significant role of digital financial access in mitigating poverty among disadvantaged groups. The major review of the present work shows the crucial aspects of digital financial inclusion in empowering individuals, fostering economic opportunities, and driving inclusive growth. Drawing upon evidence from developing countries, digital financial services also show positive impacts on income generation, savings, credit access, and women's economic participation. While acknowledging potential challenges, the paper advocates for policy interventions that foster a conducive environment for digital financial inclusion, ultimately contributing to the achievement of global poverty reduction goals.
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Ozili, P K. (2018, December 1). Impact of digital finance on financial inclusion and stability. Elsevier BV, 18(4), 329-340. https://doi.org/10.1016/j.bir.2017.12.003
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Romeo, A., & Nautwima, J P. (2022, January 1). Determinants of Financial Capability: A Situational Analysis for Namibia. 7(6), 7-13. https://doi.org/10.18775/ijied.1849-7551-7020.2015.76.2001
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UNCTAD. (2020). The Covid-19 crisis: Accentuating the need to bridge digital divides. United Nations Conference on Trade and Development.
World Bank. (2014). Financial inclusion: Global financial development report. World Bank.
World Bank. (2024). Digital Financial Services. https://digitalfinance.worldbank.org/topics/dfs-overview
Achugamonu, B U., Omankhanlen, A E., Gershon, O., Arewa, A., & Okoye, L U. (2020, January 1). Digital finance as a mechanism for extending the boundaries of financial inclusion in sub-Saharan Africa: A general methods of moments approach. Taylor & Francis, 7(1), 1788293-1788293. https://doi.org/10.1080/23311983.2020.1788293
AFI. (2016). Digital financial services: Consumer protection in mobile financial services. Alliance for Financial Inclusion.
Alexander, K., & Karametaxas, X E. (2020, January 1). Digital Transformation and Financial Inclusion. RELX Group (Netherlands). https://doi.org/10.2139/ssrn.3645994
Anastesia, A C., Chijindu, E H., & Steve, E E. (2020, August 20). Effect of financial inclusion on entrepreneurial growth in retail and wholesale sub-sectors: Evidence from Nigeria. , 11(01). https://doi.org/10.24052/bmr/v11nu01/art-31
Arner, D. W., Barberis, J. N., & Buckley, R. P. (2017). FinTech, RegTech, and the reconceptualization of financial regulation. Northwestern Journal of International Law and Business, 37(3), 371-413.Babajide, A A., Okunlola, F A., Lawal, A I., Akinjare, V B., & Lawal-Adedoyin, B. (2021, January 1). Financial Inclusion: Implication on Per Capita Income in Nigeria. 11(8), 603-617. https://doi.org/10.18488/journal.aefr.2021.118.603.617
Basrowi, B., Suryanto, T., Anggraeni, E., & Nasor, M. (2020, December 4). The Effect Of Islamic Financial Literation And Financial Technology On Islamic Financial Inclusion. , 5(2), 231-231. https://doi.org/10.29240/alfalah.v5i2.1669
Bengtsson, M. (2016). How to plan and perform a qualitative study using content analysis. NursingPlus Open 2, 8–14.
Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017: Measuring financial inclusion and the fintech revolution. The World Bank, Washington USA.
Demirguc-Kunt, A., Klapper, L., Singer, D., & Ansar, S. (2022). The Global Findex Database 2021. The World Bank, Washington USA.
Developing Inclusive Digital Payment Systems. (2021, September 21). https://www.csis.org/analysis/developing-inclusive-digital-payment-systems.
Digital Financial Inclusion. (2016, August 30). https://www.worldbank.org/en/topic/financialinclusion/publication/digital-financial-inclusion
Dostov, V., Shust, P., & Khorkova, A A. (2019, January 1). New trends in financial inclusion policies: role of digital technologies and digital inclusion. https://doi.org/10.2991/ies-18.2019.54
GPFI. (2016), Global Standard-Setting Bodies and Financial Inclusion: The Evolving Landscape, GPFI, Washington, DC, USA, Volume 3, p. 46.
GSMA. (2019). The mobile economy 2019. GSM Association.Harnessing Africa's digital potential. (2018, January 11). https://www.brookings.edu/research/harnessing-africas-digital-potential/
Handayani, W., Fisher, M. R., Rudiarto, I., Setyono, J. S. and Foley, D. (2019) Operationalizing resilience: A content analysis of flood disaster planning in two coastal cities in Central Java, Indonesia. International Journal of Disaster Risk Reduction 35, 101073
Jack, W., & Suri, T. (2014). Risk sharing and transactions costs: Evidence from Kenya's mobile money revolution. American Economic Review, 104(1), 183-223.
Kasiisii, A S., Siluvaimuthu, M., & Golden, S. (2023, May 11). The Effectiveness of Digital Financial Inclusion in Improving Financial Capability. Tutor Treinamento e Desenvolvimento, 8(5), e0839-e0839. https://doi.org/10.26668/businessreview/2023.v8i5.839
Lauer, K., & Lyman, T. (2015). Digital financial inclusion: Implications for customers, regulators, supervisors, and standard-setting bodies. CGAP.
Li, Q., & Liu, Q. (2023). Impact of Digital Financial Inclusion on Residents’ Income and Income Structure. Sustainability, 15, 2196. https://doi.org/10.3390/su15032196
Liu, D., Xie, Y., Hafeez, M., & Usman, A. (2021). The Trade-Off Between Economic Performance and Environmental Quality: Does Financial Inclusion Asymmetrically Matter for Emerging Asian Economies? Research Square (United States). https://doi.org/10.21203/rs.3.rs-834441/v1
Mukherjee, S., & Sood, K. (2020, January 1). Triggers and Barriers of Financial Inclusion: A Country-Wise Analysis. 10(9), 970-988. https://doi.org/10.18488/journal.aefr.2020.109.970.988
Osagie, R O. (2020). Financial Inclusion: A Panacea for Attaining Sustainable Development in Developing Countries Like Nigeria, 14(2), 1-11. https://doi.org/10.26552/ems.2020.2.1-11
Ozili, P K. (2018, December 1). Impact of digital finance on financial inclusion and stability. Elsevier BV, 18(4), 329-340. https://doi.org/10.1016/j.bir.2017.12.003
Sun, G.-L., Ai, Y.-F., Li, M. (2021). Capital Misallocation and the Quality of Economic Growth in China: Based on Research on the Path of Financial Efficiency and Capacity Utilization. J. Manag, 34, 57–73.
Romeo, A., & Nautwima, J P. (2022, January 1). Determinants of Financial Capability: A Situational Analysis for Namibia. 7(6), 7-13. https://doi.org/10.18775/ijied.1849-7551-7020.2015.76.2001
Yakubi, Y A Y., Basuki, B., Purwono, R., & Usman, I. (2022, July 1). The Impact of Digital Technology and Business Regulations on Financial Inclusion and Socio-Economic Development in Low-Income Countries. SAGE Publishing, 12(3), 215824402211161-215824402211161. https://doi.org/10.1177/21582440221116112
Yang, Y.-P., Wu, D.; Xu, M., Yang, M.-T., Zou, W.-Y. (2022). Capital misallocation, technological innovation, and green development efficiency: Empirical analysis based on China provincial panel data. Environ. Sci. Pollut. Res, 29, 65535–65548.
UNCTAD. (2020). The Covid-19 crisis: Accentuating the need to bridge digital divides. United Nations Conference on Trade and Development.
World Bank. (2014). Financial inclusion: Global financial development report. World Bank.
World Bank. (2024). Digital Financial Services. https://digitalfinance.worldbank.org/topics/dfs-overview
Published
2024-10-05
How to Cite
NAWAI, Norhaziah; SEMAN, Junaidah Abu.
DIGITAL FINANCIAL INCLUSION: A PATHWAY TO POVERTY ALLEVIATION IN DEVELOPING COUNTRIES.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 10, n. 1, p. 1359-1366, oct. 2024.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/3072>. Date accessed: 03 feb. 2026.
Section
Articles
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
