IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2021-090.html
   My bibliography  Save this paper

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

Author

Listed:
  • Purva Khera
  • Miss Stephanie Y Ng
  • Ms. Sumiko Ogawa
  • Ms. Ratna Sahay

Abstract

Adoption of technology in the financial services industry (i.e. fintech) has been accelerating in recent years. To systematically and comprehensively assess the extent and progress over time in financial inclusion enabled by technology, we develop a novel digital financial inclusion index. This index is based on payments data covering 52 developing countries for 2014 and 2017, taking into account both access and usage dimentions of digital financial services (DFSs). This index is then combined with the traditional measures of financial inclusion in the literature and aggregated into an overall index of financial inlusion. There are two key findings: first, the adoption of fintech has been a key driver of financial inclusion. Second, there is wide variation across countries and regions, with the greatest progress recorded in Africa and Asia and the Pacific regions. This index should offer a useful analytical tool for researchers and policy makers.

Suggested Citation

  • Purva Khera & Miss Stephanie Y Ng & Ms. Sumiko Ogawa & Ms. Ratna Sahay, 2021. "Digital Financial Inclusion in Emerging and Developing Economies: A New Index," IMF Working Papers 2021/090, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/090
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=50271
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shijiang Chen & Mingyue Liang & Wen Yang, 2022. "Does Digital Financial Inclusion Reduce China’s Rural Household Vulnerability to Poverty: An Empirical Analysis From the Perspective of Household Entrepreneurship," SAGE Open, , vol. 12(2), pages 21582440221, June.
    2. Kouladoum, Jean-Claude & Wirajing, Muhamadu Awal Kindzeka & Nchofoung, Tii N., 2022. "Digital technologies and financial inclusion in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 46(9).
    3. Chen, Xiaoyu & Wang, Yujing & Li, Tongxin, 2024. "Examining the resource curse phenomenon, digital finance integration, and their impacts on economic growth: Empirical insights from South Korea," Resources Policy, Elsevier, vol. 88(C).
    4. Tao, Zhe & Wang, Xican & Li, Jing & Wei, Xiaobei, 2023. "How can digital financial inclusion reduces relative poverty? An empirical analysis based on China household finance survey," Finance Research Letters, Elsevier, vol. 58(PC).
    5. Wang, Xiong & Wang, Xiao & Ren, Xiaohang & Wen, Fenghua, 2022. "Can digital financial inclusion affect CO2 emissions of China at the prefecture level? Evidence from a spatial econometric approach," Energy Economics, Elsevier, vol. 109(C).
    6. Donghong Wu & Yiren Chen, 2023. "Digital Inclusive Finance Development and Labor Productivity: Based on a Capital-Deepening Perspective," Sustainability, MDPI, vol. 15(12), pages 1-17, June.
    7. Adella Siti Nursaliyawati & Siskarossa Ika Oktora, 2022. "Simultaneous Relationship between Financial Inclusion, Economic Growth, and Income Inequality in Sulawesi Island, 2011–2019," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 68, pages 132-148, Desember.
    8. Zhao, Yang & Goodell, John W. & Dong, Qingli & Wang, Yong & Abedin, Mohammad Zoynul, 2022. "Overcoming spatial stratification of fintech inclusion: Inferences from across Chinese provinces to guide policy makers," International Review of Financial Analysis, Elsevier, vol. 84(C).
    9. Ma, Xiaochen & Shi, Wenchao & Yang, Hongxing, 2022. "Study on water spraying distribution to improve the energy recovery performance of indirect evaporative coolers with nozzle arrangement optimization," Applied Energy, Elsevier, vol. 318(C).

    More about this item

    Keywords

    Fintech; digital financial services; financial inclusion; financial services industry; adoption of technology; capital markets department; services play; account ownership; Mobile banking; Caribbean; Asia and Pacific; Global; Africa;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2021/090. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.