Financial Inclusion and the Dark and Bright Sides of Digitalisation in Developed and Developing Countries

Abstract

This chapter explores the relationship between financial inclusion and the dark and bright sides of digitalisation in ten developed and developing countries over the period of 2008 to 2020. An analysis of panel data for the studied countries revealed a significant positive relationship between financial inclusion and technology, especially in terms of secure servers and financial innovation in the developing countries. These findings indicate that technology fosters access to and usage of financial services. In addition, the analysis revealed significant negative relationships between financial inclusion and secure servers and financial innovation in the developed countries as well as a significant positive relationship between financial inclusion and technology growth. The chapter concluded that the governments should adopting low-cost and easy-to-access technology and promoting financial inclusion in all classes of society.