Measuring fintech-driven financial inclusion for developing countries: Comprehensive Digital Financial Inclusion Index (CDFII)

IF 0.7 Q3 ECONOMICS
Banna Banik, Chandan Kumar Roy
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Abstract

Purpose ― The main objective of this study is to develop a comprehensive digital financial inclusion index (CDFII) that accounts for technology-driven financial inclusion and to compare it with a traditional financial inclusion index (TFII) to enhance the measurement of fintech-driven financial inclusion across countries.Methods ― The study employs a three-stage principal component analysis (PCA) to construct the CDFII and TFII using the latest available data from 31 developing countries during the period 2015-2021. The CDFII incorporates a new sub-index measuring individual literacy levels for using financial services, along with existing sub-indices capturing the penetration, availability, and usage of DFS. By integrating digital financial inclusion (DFII) and TFII, the overall CDFII is estimated.Findings ― The findings reveal that the levels of DFII and CDFII are higher than TFII for most of the economies examined. This indicates the significant impact of technology-driven financial inclusion in expanding access to formal banking and non-banking financial services for previously unbanked populations.Implication ― The study implies that policymakers and researchers should prioritize the integration of technology-driven financial inclusion indicators, such as the comprehensive digital financial inclusion index (CDFII), into their assessments and interventions to ensure a more accurate and effective approach to promoting inclusive and sustainable economic development.Originality ― This study introduces the CDFII as a novel comprehensive index that addresses the shortcomings of traditional financial inclusion indices. By incorporating individual skill levels and considering dimensions specific to DFS, the CDFII provides a more accurate representation of fintech-driven financial inclusion levels. This contributes to the existing literature on financial inclusion measurement and provides a valuable analytical tool for researchers and policymakers.
衡量发展中国家金融科技驱动的普惠金融:综合数字普惠金融指数(CDFII)
目的-本研究的主要目标是制定一个综合的数字普惠金融指数(CDFII),该指数考虑了技术驱动的普惠金融,并将其与传统的普惠金融指数(TFII)进行比较,以加强对各国金融技术驱动的普惠金融的衡量。方法:本研究采用三阶段主成分分析(PCA),利用2015-2021年31个发展中国家的最新数据构建CDFII和TFII。CDFII纳入了一个新的分类指数,衡量个人使用金融服务的知识水平,以及现有的分类指数,反映DFS的渗透、可用性和使用情况。通过整合数字普惠金融(DFII)和数字普惠金融(TFII),估算出总体的数字普惠金融(CDFII)。调查结果-调查结果显示,大多数经济体的DFII和CDFII水平高于TFII。这表明,技术驱动的普惠金融对扩大以前没有银行账户的人口获得正规银行和非银行金融服务的机会产生了重大影响。启示-该研究表明,政策制定者和研究人员应优先将技术驱动的普惠金融指标(如综合数字普惠金融指数(CDFII))纳入其评估和干预措施中,以确保采用更准确、更有效的方法促进包容性和可持续经济发展。创新——本研究引入CDFII作为一种新颖的综合指标,解决了传统普惠金融指标的不足。通过纳入个人技能水平并考虑DFS特有的维度,CDFII更准确地反映了金融科技驱动的普惠金融水平。这对现有的普惠金融测量文献有所贡献,为研究人员和政策制定者提供了有价值的分析工具。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
自引率
20.00%
发文量
21
审稿时长
12 weeks
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