Factors that Determine Digital Financial Inclusion in Banking industry. The Case of Sample Selected Commercial Banks in Ethiopia
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Date
2024-01-25
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Publisher
AAU
Abstract
Digital financial inclusion makes formal financial services digitally accessible and accessible to
marginalized and underserved populations. Such services should be tailored to the needs of
consumers and delivered responsibly. Costs are affordable for consumers and fair for providers.
For both individuals and businesses, digitizing finance will reduce costs, open up new markets
and livelihood opportunities. The study uses quantitative methods in a Descriptive and
explanatory research Design, The study analyzes and measures the level of financial literacy,
regulatory framework and digital infrastructures influencing to digital financial inclusion in
commercial Banking sectors. Financial literacy, digital financial infrastructure and regulatory
framework is significantly affecting digital financial inclusion in Commercial Banking sectors,
and there is a positive correlation between dependent variable and independent variables. The
survey result shows that digital financial infrastructure has highly correlated than regulatory
framework next to financial literacy; this is reviled that low digital infrastructure is affect the
expansion of digital financial inclusion next to financial literacy of the society. The overall
finding of this study suggests that digital financial inclusion significantly affected by financial
literacy level of the society, digital financial infrastructure and regulatory frameworks
respectively. This study mentions that commerial Banks should be invest on these major
determinanant factors, to get high return in profit and helping the economic development..