Role of Digital Financial Inclusion in Promoting Economic Growth and Freedom

Abstract

AbstractDigitalization is considered a pivotal step toward attaining financial freedom, financial inclusion, financial development, and economic growth of a country as a whole. The impact of digital finance on financial inclusion and freedom is significant when it comes to the allocation of financial services to society, including the poor via transformational technologies. This chapter delves into the basic understanding of various aspects of digitalization and its impact on economic and financial freedom. Specifically, we first discuss the connection between financial inclusion and financial freedom and then explore how digitalization in the modern industrial era improves the financial freedom of people by making borrowing easier with alternative financing. Further, we show how digital financial services via Information and Communication Technology (ICT) dissemination and penetration lead to financial freedom and financial development. Finally, we explore the idea of financial freedom in the context of banking performance and its efficiency.KeywordsDigitalizationFreedomEconomyGrowthFintech