A Study of Digital Financial Inclusion in Developing Countries and Emerging Economies

Abstract

Around the world, high inflation, slow economic growth and food shortages are hurting the poor the most. To address this, the World Bank is committed to expanding financial inclusion through digitization. The rapidly expanding sector of digital finance has the potential to help poor nations in a variety of ways with long-term growth. Expanding people's access to financial services in developing nations is one of these methods, which can also increase economic development and tax income. In order for underprivileged individuals, particularly women, to participate in the contemporary economy, it is crucial that they have access to digital financial services. Global poverty has greatly grown as the unequal consequences of Covid phase have come to light and the present numerous crises have already drastically reversed growth. Positively, the Covid crisis has sparked unheard-of transformation, particularly in sectors with a significant digital component. Digital technology can be a game changer in tackling the multi-decadal challenge of achieving universal financial inclusion. The financial services that are available and used in developing economies have risen as a result of the digital revolution. The fast adoption of digital technology in the countries over the past 15 years has served as the basis for a number of success stories among the members. With great success, the emerging economies have taken important steps to promote financial inclusion online in their countries. Universal financial inclusion has been one of the major developmental priorities for the developing countries over the last few decades. Governments and central banks of the developing countries have undertaken several initiatives to ensure access and affordability of financial services to all sections of the society, especially the weaker sections and low-income groups.