Dynamics of Digital Financial Inclusion in Türkiye

This study examined the dynamics of different levels of digital financial inclusion (DFI) in Türkiye within the framework of individuals’ basic financial behaviours and socioeconomic conditions and investigated factors that may affect the utilisation rate of DFI. Accordingly, findings from the 2017–2021 World Bank Global Findex dataset were estimated using the ordered logit model. The concept of DFI, which is becoming increasingly important, underscores that financial systems should have two basic conditions. First, the ability of those who can access financial systems digitally should be as high as possible. Second, these actors with access to financial systems should also have sufficient utilisation rates of the relevant financial instruments. In this respect, by focusing on the determinants of this second condition, the study fills a gap in the literature and provides clues for policy recommendations. These findings provide empirical evidence for our motivation. In this respect, the results clearly show that socioeconomic factors, such as education level and income level, as well as financial behaviours, such as formal savings and borrowing, should be taken into account when expanding DFI.