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Measuring Digital Financial Inclusion in Emerging Market and Developing Economies: A New Index

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  • Purva Khera
  • Stephanie Ng
  • Sumiko Ogawa
  • Ratna Sahay

Abstract

Adoption of technology in the financial services industry has been accelerating in recent years. To assess its contribution to financial inclusion, we develop a novel digital financial inclusion index covering 52 emerging market and developing economies. We find that (i) the adoption of digital financial services has been a key driver of financial inclusion; and (ii) there is wide variation across countries and regions, with the greatest progress recorded in Africa and Asia. Given the accelerated adoption of digital payments during the COVID‐19 pandemic, policies are needed to close the digital divide to ensure continued progress in financial inclusion and safeguard trust in financial services.

Suggested Citation

  • Purva Khera & Stephanie Ng & Sumiko Ogawa & Ratna Sahay, 2022. "Measuring Digital Financial Inclusion in Emerging Market and Developing Economies: A New Index," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 213-230, July.
    • Handle: RePEc:bla:asiapr:v:17:y:2022:i:2:p:213-230
    DOI: 10.1111/aepr.12377
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    References listed on IDEAS

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    3. Yasuyuki Sawada, 2022. "Comment on "Measuring Digital Financial Inclusion in Emerging Market and Developing Economies: A New Index"," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 233-234, July.
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    20. Adugna, Hailu, 2024. "Fintech dividend: How would digital financial services impact income inequality across countries?," Technology in Society, Elsevier, vol. 77(C).
    21. Favourate Y. Mpofu, 2024. "Industry 4.0 in Finance, Digital Financial Services and Digital Financial Inclusion in Developing Countries: Opportunities, Challenges, and Possible Policy Responses," International Journal of Economics and Financial Issues, Econjournals, vol. 14(2), pages 120-135, March.
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    23. Zakaria Elouaourti & Aomar Ibourk, 2024. "Unveiling the drivers of Africa's digital financial inclusion journey," African Development Review, African Development Bank, vol. 36(1), pages 84-96, March.
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