Accelerating Financial Inclusion in Developing Economies (India) Through Digital Financial Technology

Abstract

The study employs a mixed-methods approach, incorporating both quantitative and qualitative methodologies. The methodology encompasses literature and the development of a system dynamics model. This model is used to identify pivotal factors or barriers within emerging economies that either impede or facilitate the transition to an inclusive financial system. Keywords and drivers are discerned through qualitative analysis of existing literature, facilitating the construction of a quantitative model. This model depicts the interplay and relative impact of identified factors on the ability of emerging economies to achieve financial inclusion. Results indicate that digital financial technologies significantly enhance financial inclusion by providing access to essential financial services for underserved populations. The study identifies ten key variables that influence financial systems. A primary challenge identified is the limited accessibility to financial services for people in developing regions. The chapter concludes with recommendations for policymakers and financial institutions.