Understanding the link between government cashless policy, digital financial services and socio-demographic characteristics in the MENA countries

Abstract

PurposeTo help inform the debate over whether socio-demographic characteristics are related to the use of digital technologies, the authors investigated the effects of age, gender, education, income and being in the workforce on changes in using financial digital services using panel data collected in the MENA countries during 2017.Design/methodology/approachThis study aims to identify the impact of government policy on the determinants of financial inclusion and digital payment services in the MENA region. The authors use microdata from the 2017 Global Findex database on MENA countries to perform probit estimations. The paper focuses on the role of technology adoption by government authorities in extending financial inclusion and digital payment around different people.FindingsThe authors find that poorer people (and, by association, less educated people) and the young (but less so the elderly) are disproportionately excluded from the financial system. Results confirm that better collaboration between the government and the financial sector can help to develop digital financial inclusion through the technology adoption channels. The study confirms the significant impact of the government cashless policy in advancing financial inclusion in the MENA countries, with potentially wider applicability to other developed economies.Practical implicationsPolicies to advance mobile money innovations could stimulate financial inclusion by promoting digital transaction services. The role of government authorities is imperative to harness the beneficial and sustainable gains from digitizing remittances and transfers to promote a cashless economy.Originality/valueFinancial inclusion promotes equality through a broadening of the system and government cashless policy can be a major catalyst for greater financial inclusion. It helps in the overall economic development of the underprivileged population and contributes to poverty reduction.

Financial inclusion and education: An empirical study of financial inclusion in the face of the pandemic emergency due to Covid‐19 in Latin America and the Caribbean

“…Alternatively, completing secondary and tertiary education levels have a positive significant relationship with financial inclusion-gender equality. In line with previous studies, advanced education levels increase financial inclusion-equality based index (Arora, 2012;Cicchiello, Kazemikhasragh, Monferrá, et al, 2021;Mouna & Jarboui, 2021;Yan & Qi, 2021). The results with the interaction of Covid-19 restrictions show that all education levels increase financial inclusion in Latin American countries.…”

Determinants and Mechanisms of Digital Financial Inclusion Development: Based on Urban-Rural Differences

“…P2P lending as a tool to popularize digital financial inclusion may unintentionally exclude some consumer segments due to the competitive nature of P2P platforms [21,25]. If the government and the financial sector could collaborate better, digital financial inclusion would be better due to technology adoption channels [26,27]. The increment effect of financial support and technological progress transit from high to low smoothly with the changes in government expenditure [28].…”

Socio-economic characteristics, mobile phone ownership and banking behaviour of individuals as determinants of digital financial inclusion in India

“…Overall, it is evident that socio-economic characteristics are significant determinants of digital financial inclusion, which is considered to be an important tool for enhancing livelihood, reducing poverty and strengthening the empowerment of communities. The findings of this study are similar to previous studies on the influence of socio-economic variables on financial inclusion (Allen et al ., 2016; Amoah et al ., 2020; Dar and Ahmed, 2020; Kara et al ., 2021; Mouna and Jarboui, 2022; Bathula and Gupta, 2021).…”