A Study on the Prospects and Challenges of Digital Financial Inclusion

Main Article Content

S. M. Riha Parvin
Niyaz Panakaje

Abstract

Objective: Financial inclusion through digital means has initiated the concept of digital financial inclusion (DFI) which is intended to reach out vulnerable community without having digital financial access. This study is an attempt to analyze the various prospects and challenges concerning digital financial inclusion. As the main intention of this study was to assess the challenges and prospects of digital financial inclusion, ABCD analysis also has been undertaken to assess its Advantages, Benefits, Constraints and Disadvantages.


Methodology: This research is conducted through secondary sources in order to provide a full-fledged evidence-based study on the prospects and challenges of digital financial inclusion. The semi-systematic review is done through various published reports and articles from RBI, ABD, G20, Springer, Tailor & Francis, Emarald, Google Scholar, Srinivas Publications, Research Gate, SSRN, etc.


Findings: The result of extensive review revealed that digital financial inclusion acts as a major catalyst for socio-economic, sustainable and inclusive prosperity. Various challenges concerning digital financial inclusion includes lack of financial literacy, inefficient utilization of technology by the rural population, lack of trust and data privacy concern. Apart from that the study strongly argued that digital financial inclusion promotes socio-economic development of the citizens and it also reduces cost, improves efficiency and competitiveness of the service providers.


Practical Implications: This research provides a guide for financial institutions and FinTech companies to realize the various challenges tackled by the citizens to improve their service delivery and provide better digital services. It also acts as a source of information to the users of DFI to understand the benefits of being digitally inclusive for their finance.


Originality/value: As a secondary data based study it may provide overall view on DFI and may help the policy makers and financial regulators to promote financial inclusive growth; but the concept of DFI can also be better understood by conducting a primary survey, hence it acts as limitations of the study.


Paper type: Case Study

Downloads

Download data is not yet available.

Article Details

How to Cite
S. M. Riha Parvin, & Niyaz Panakaje. (2022). A Study on the Prospects and Challenges of Digital Financial Inclusion. International Journal of Case Studies in Business, IT and Education (IJCSBE), 6(2), 469–480. https://doi.org/10.47992/IJCSBE.2581.6942.0210
Section
Articles