¹Assoc.Prof. Yesim Sirakaya, ²Recep Erturk

¹St. Clements University Labor Economics and Industrial Relations Department Head of the Main Science

²St. Clements University Economy and Finance Department PhD student

DOI : https://doi.org/10.58806/ijsshmr.2025.v4i5n07

Google Scholar Download Pdf
ABSTRACT

It has become a critical strategy in terms of increasing financial inclusion in developing countries, combating poverty, reducing economic development and income inequality (Demirgüç-Kunt et al., 2018). In this context, Digital Financial Services (DFH) supports inclusiveness by providing a strong alternative for individuals who do not have access to traditional banking systems (Ozili, 2018). Digital vehicles such as mobile banking, digital wallets, credit services over the internet and fintech applications facilitate the integration of individuals living in low -income and rural areas into the financial system (GSMA, 2021). In this study, the impact of digital financial services on financial inclusion in developing countries was examined by literature screening method. The studies discussed; It shows that factors such as the development of digital infrastructure, regulatory frames, digital literacy level and gender inequality significantly affect the inclusion levels (Sahay et al., 2020). Furthermore, it has been found that the spread of digital financial instruments provides economic benefits at micro and macro level (Lukogga, 2020). This article argues that digital financial transformation should be considered as an inclusive development model in developing countries and provides strategic suggestions for policy makers.

KEYWORDS:

Digital Finance, Financial inclusion, developing countries, fintech, mobile banking, digital transformation, combating poverty.

REFERENCES

1) Alliance for Financial Inclusion (AFI). (2021). Digital Financial Services: Policy Frameworks and Regulatory Innovation. https://www.afi-global.org

2) Alliance for Financial Inclusion (AFI). (2021). Enhancing Digital Financial Literacy in Developing Economies. https://www.afi-global.org

3) Alliance for Financial Inclusion (AFI). (2021). Gender-Responsive Policy Frameworks for Financial Inclusion. https://www.afi-global.org

4) Baruah, B. (2021). Digital financial inclusion in India: A case study of PMJDY and Aadhaar. South Asian Journal of Social Studies, 9(2), 114–129.

5) Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa

6) Demrgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017: Measuring financial inclusion and the fintech revolution. World Bank Publications. https://doi.org/10.1596/978-1-4648-1259-0

7) GSMA. (2021). Mobile Money Policy and Regulatory Handbook. https://www.gsma.com

8) GSMA. (2021). State of the Industry Report on Mobile Money 2021. https://www.gsma.com

9) GSMA. (2021). The Mobile Gender Gap Report 2021. https://www.gsma.com

10) Jack, W., & Suri, T. (2014). Risk sharing and transactions costs: Evidence from Kenya’s mobile money revolution. American Economic Review, 104(1), 183–223. https://doi.org/10.1257/aer.104.1.183

11) Lukonga, I. (2020). Digital financial services and the pandemic: Opportunities and risks for emerging and developing economies. IMF Working Paper No. 20/180. https://www.imf.org/en/Publications/WP/Issues/2020/09/04

12) OECD. (2020). Bridging the Digital Gender Divide: Include, Upskill, Innovate. https://www.oecd.org/digital/bridging-the-digital-gender-divide.pdf

13) OECD. (2020). Digital Financial Literacy: A Framework for Policy Makers. https://www.oecd.org/financial/education

14) Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2018.06.004

15) Sahay, R., von Allmen, U. E., Lahreche, A., Khera, P., Ogawa, S., Bazarbash, M., & Beaton, K. (2020). The promise of fintech: Financial inclusion in the post-COVID-19 era. IMF Departmental Paper Series 2020/09. https://www.imf.org/en/Publications/Departmental-Papers-Policy-Papers/Issues/2020/06/29

16) Suri, T., & Jack, W. (2016). The long-run poverty and gender impacts of mobile money. Science, 354(6317), 1288–1292. https://doi.org/10.1126/science.aah5309

17) World Bank. (2019). Identification for Development (ID4D) Global Dataset. https://id4d.worldbank.org

18) World Bank. (2022). Fintech and the Future of Finance. https://www.worldbank.org

VOlUME 04 ISSUE 05 MAY 2025