Financial Inclusion Paradigm Shift in the Postpandemic Period. Digital-Divide and Gender Gap

Abstract

Financial inclusion is strongly differentiated by age groups and countries and the pandemic has highlighted the increased gaps and inequalities but also the weaknesses of the system, in terms of flexibility, access and facilities of the customer-bank relationship and also from the perspective of the financial education of young generations and vulnerable people, active in the labor market. Based on the available data provided by the Global Findex database, and some findings after more than one year of COVID-19 crisis we outlined the main aspects of financial digitization, by categories of people and countries. At the same time, we identified the challenges and problems during the pandemic that significantly adjusted the consumption pattern of citizens and increased the need for on-line access for financial transactions. Starting from the analysis of the inequality of access to financial instruments in the last years, from the informational asymmetry in financial education and the challenges of the pandemic period, we underlined the main coordinates of changing the model of sustainable financial inclusion—based on five pillars—access, education, support tools, CSR and resilience. The research results highlight the need for convergence in providing opportunities to consider financial inclusion as a public good and an active tool to increase consumers’ satisfaction and the quality of life of individuals.

Exploring The Nexus Between Financial Inclusion, Poverty, Digitalization And Sustainable Development Goal

“…In many countries, consumers can be excluded from digital financial services because they do not have enough income to purchase devices performing those operations and hence, cash remains their payment option (Vasile et al, 2021). Furthermore, consumer perception of the sustainability practice of financial institutions (Grigorescu et al, 2021a) and their attitudes toward digital technologies play a key role in advancing financial inclusion (Vasile et al, 2021).…”

“…According to the World Bank, Financial inclusion facilitates the implementation of 7 Sustainable Development Goals (World Bank, 2022). In particular, it is related to the SDGs 1, 4, 5, 8 9, 10, and 12 goals (Vasile et al, 2021).…”

The Role of Digital Technologies in the Transformation of Regional Models of Households’ Financial Behavior in the Conditions of the National Innovative Economy Development

“…Today, digitalization processes are gaining significant development and are gradually penetrating all sectors of economy and public life. In general, the vast majority of research focuses on the impact of digitalization on the global financial services market [34][35][36][37][38][39][40]. The study of the model of functioning of the financial services market in its separate segments: deposit, credit, insurance and investment showed an important role of banking institutions in the economic development of countries [41].…”

FinTechs and financial inclusion—Balkan experience: Digital perspectives on financial markets

“…The new financial technologies represented by Fintech are a natural solution in the context of the existence of special categories of consumers, namely the new generations who possess suitable digital skills—Generation Y and Generation Z. The Fintech growth is influenced by factors like customers' behavior, education (stem and financial), business digitization and ability to innovate (Grigorescu & Bortea, 2020; Ndou et al, 2021; Panait et al, 2018; Sumedrea, 2019; Vasile et al, 2021).…”