IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i3p2383-d1049644.html
   My bibliography  Save this article

Digital Financial Inclusion: COVID-19 Impacts and Opportunities

Author

Listed:
  • Oleksandr Dluhopolskyi

    (Faculty of Public Administration and Business, WSEI University, 20-209 Lublin, Poland
    Faculty of Economics and Management, West Ukrainian National University, 46027 Ternopil, Ukraine)

  • Olena Pakhnenko

    (Department of Financial Technologies and Entrepreneurship, Sumy State University, 40000 Sumy, Ukraine)

  • Serhiy Lyeonov

    (Faculty of Management and Security Studies, University of Social Sciences, 9 Sienkiewicza Str., 90-113 Lodz, Poland)

  • Andrii Semenog

    (Department of Financial Technologies and Entrepreneurship, Sumy State University, 40000 Sumy, Ukraine)

  • Nadiia Artyukhova

    (Department of Marketing, Sumy State University, 40000 Sumy, Ukraine)

  • Marta Cholewa-Wiktor

    (Faculty of Management, Lublin University of Technology, 20-618 Lublin, Poland)

  • Winczysław Jastrzębski

    (Faculty of Public Administration and Business, WSEI University, 20-209 Lublin, Poland)

Abstract

The COVID-19 pandemic has caused the acceleration of digitization and the consideration of digital financial inclusion as a means to minimize negative economic consequences and increase the resilience of households and SMEs. The purpose of this article was to assess the impact of the COVID-19 pandemic on digital financial inclusion by constructing and calculating an integral index of digital financial inclusion (DFI) based on Global Findex Database indicators. The approach to calculating the DFI index and two sub-indices that characterized passive participation in financial relations and active use of digital technologies was based on a linear mathematical model of the integrated indicator and on the use of the Fishburn formula to calculate the weight coefficients. The obtained results proved the acceleration of digital financial inclusion in 2021 and revealed significant differences in DFI between countries and groups of countries according to income level as well as problems of financial exclusion of the most vulnerable groups of population, especially in developing countries. The obtained results regarding the level of DFI are discussed from the point of view of COVID-19 impacts: both directly by influencing consumer behavior and decisions regarding digital financial services and from a broader perspective by influencing business entities, financial service providers, and regulation.

Suggested Citation

  • Oleksandr Dluhopolskyi & Olena Pakhnenko & Serhiy Lyeonov & Andrii Semenog & Nadiia Artyukhova & Marta Cholewa-Wiktor & Winczysław Jastrzębski, 2023. "Digital Financial Inclusion: COVID-19 Impacts and Opportunities," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2383-:d:1049644
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/3/2383/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/3/2383/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kotkowski, Radoslaw & Polasik, Michal, 2021. "COVID-19 pandemic increases the divide between cash and cashless payment users in Europe," Economics Letters, Elsevier, vol. 209(C).
    2. Lenny Phulong Mamaro & Athenia Bongani Sibindi, 2022. "Entrepreneurial Financing in Africa during the COVID-19 Pandemic," JRFM, MDPI, vol. 15(11), pages 1-17, November.
    3. Mostak Ahamed & Roxana Guti'errez-Romero, 2020. "COVID-19 response needs to broaden financial inclusion to curb the rise in poverty," Papers 2006.10706, arXiv.org.
    4. Robert Jeyakumar Nathan & Budi Setiawan & Mac Nhu Quynh, 2022. "Fintech and Financial Health in Vietnam during the COVID-19 Pandemic: In-Depth Descriptive Analysis," JRFM, MDPI, vol. 15(3), pages 1-19, March.
    5. Pragya Maharjan & Niranjan Devkota & Sushanta Mahapatra & Ihtsham Ul Haq Padda & Krishna Dhakal & Surendra Mahato & Ghanashyam Khanal & Seeprata Parajuli & Udaya Raj Paudel & Ujjwal Bhattarai, 2022. "FinTech Adoption among Online Grocery Buyers during COVID-19 Lockdowns in Nepal," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 37(Summer 20), pages 57-89.
    6. Marcelin, I. & Sun, W. & Teclezion, M. & Junarsin, E., 2022. "Financial inclusion and bank risk-taking: the effect of information sharing," Finance Research Letters, Elsevier, vol. 50(C).
    7. Valentina Vasile & Mirela Panait & Simona-Andreea Apostu, 2021. "Financial Inclusion Paradigm Shift in the Postpandemic Period. Digital-Divide and Gender Gap," IJERPH, MDPI, vol. 18(20), pages 1-28, October.
    8. Huynh Thi Ngoc Ly & Nguyen Vinh Khuong & Tran Hung Son, 2022. "Determinants Affect Mobile Wallet Continuous Usage In Covid 19 Pandemic: Evidence From Vietnam," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2041792-204, December.
    9. Regean Mugume & Enock W. N. Bulime, 2022. "Post‐COVID‐19 recovery for African economies: Lessons for digital financial inclusion from Kenya and Uganda," African Development Review, African Development Bank, vol. 34(S1), pages 161-176, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peterson K. Ozili & David Mhlanga & Rym Ammar & Marwa Fersi, 2024. "Information Effect of Fintech and Digital Finance on Financial Inclusion during the COVID-19 Pandemic: Global Evidence," FinTech, MDPI, vol. 3(1), pages 1-17, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Foguesatto, Cristian Rogério & Righi, Marcelo Brutti & Müller, Fernanda Maria, 2024. "Is there a dark side to financial inclusion? Understanding the relationship between financial inclusion and market risk," The North American Journal of Economics and Finance, Elsevier, vol. 72(C).
    2. Hayet Kerras & Susana Bautista & Danilo Santos Piñeros Perea & María Dolores de-Miguel Gómez, 2022. "Closing the Digital Gender Gap among Foreign University Students: The Challenges Ahead," Sustainability, MDPI, vol. 14(19), pages 1-28, September.
    3. Ueda, Kozo, 2024. "Effects of bank branch/ATM consolidations on cash demand: Evidence from bank account transaction data in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 71(C).
    4. Sagir Danladi & M. S. V. Prasad & Umar Muhammad Modibbo & Seyedeh Asra Ahmadi & Peiman Ghasemi, 2023. "Attaining Sustainable Development Goals through Financial Inclusion: Exploring Collaborative Approaches to Fintech Adoption in Developing Economies," Sustainability, MDPI, vol. 15(17), pages 1-14, August.
    5. Semerikova, E., 2024. "Cashless payments beyond access: What influences the intensity of use?," Journal of the New Economic Association, New Economic Association, vol. 64(3), pages 171-188.
    6. Winfried Koeniger & Peter Kress & Jonas Lehmann, 2024. "Consumption Expenditures in Austria & Germany: New Evidence Based on Transactional Data," CESifo Working Paper Series 11408, CESifo.
    7. Vishal Samartha & Samarth Shenoy Basthikar & Iqbal Thonse Hawaldar & Cristi Spulbar & Ramona Birau & Robert Dorin Filip, 2022. "A Study on the Acceptance of Mobile-Banking Applications in India—Unified Theory of Acceptance and Sustainable Use of Technology Model (UTAUT)," Sustainability, MDPI, vol. 14(21), pages 1-16, November.
    8. Justus Meyer & Federica Teppa, 2023. "Euro area consumers' payment behaviour and banking digitalisation," Working Papers 772, DNB.
    9. Ferry Syarifuddin & Toni Bakhtiar, 2022. "The Macroeconomic Effects of an Interest-Bearing CBDC: A DSGE Model," Mathematics, MDPI, vol. 10(10), pages 1-33, May.
    10. Wang, Haijun & Mao, Kunyuan & Wu, Wanting & Luo, Haohan, 2023. "Fintech inputs, non-performing loans risk reduction and bank performance improvement," International Review of Financial Analysis, Elsevier, vol. 90(C).
    11. Laddawan Kaewkitipong & Charlie Chen & Jiangxue Han & Peter Ractham, 2022. "Human–Computer Interaction (HCI) and Trust Factors for the Continuance Intention of Mobile Payment Services," Sustainability, MDPI, vol. 14(21), pages 1-15, November.
    12. Jun Wang & Xinyi Zhang & Yingying Deng & Jianmin Cao & Yuan Liang, 2024. "The Impact of Digital Inclusive Finance on the Sustainable Growth of Income of Herdsmen in China’s Pastoral Areas," Sustainability, MDPI, vol. 16(17), pages 1-17, September.
    13. Kotkowski, Radoslaw, 2023. "National culture and the demand for physical money during the first year of the COVID-19 pandemic," Finance Research Letters, Elsevier, vol. 51(C).
    14. Shuiwen Gao & Haifeng Gu & Guillermo Andres Buitrago & Habiba Halepoto, 2023. "Will Off-Balance-Sheet Business Innovation Affect Bank Risk-Taking under the Background of Financial Technology?," Sustainability, MDPI, vol. 15(3), pages 1-20, February.
    15. Guo, Heng, 2023. "Enterprise litigation risk and risk taking," Finance Research Letters, Elsevier, vol. 58(PA).
    16. Budi Setiawan & Thich Dai Phan & Jennifer Medina & Martijn Wieriks & Robert Jeyakumar Nathan & Maria Fekete-Farkas, 2024. "Quest for financial inclusion via digital financial services (Fintech) during COVID-19 pandemic: case study of women in Indonesia," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 459-473, June.
    17. Mirela Clementina Panait & Simona Andreea Apostu & Iza Gigauri & Maria Giovanna Confetto & Maria Palazzo, 2024. "Defeating the Dark Sides of FinTech: A Regression-Based Analysis of Digitalization’s Role in Fostering Consumers’ Financial Inclusion in Central and Eastern Europe," Risks, MDPI, vol. 12(11), pages 1-18, November.
    18. Ochen, Ronald & Bulime, Enock Will Nsubuga, 2023. "Digital Financial Services regulations: Their evolution and impact on financial inclusion in East Africa," KBA Centre for Research on Financial Markets and Policy Working Paper Series 73, Kenya Bankers Association (KBA).
    19. Egemen Hopalı & Özalp Vayvay & Zeynep Tuğçe Kalender & Deniz Turhan & Ceyda Aysuna, 2022. "How Do Mobile Wallets Improve Sustainability in Payment Services? A Comprehensive Literature Review," Sustainability, MDPI, vol. 14(24), pages 1-30, December.
    20. Le Qin & Jie Lu & Ying Zhou & Tommy Tanu Wijaya & Yongxing Huang & Mohammad Fauziddin, 2022. "Reduction of Academic Burnout in Preservice Teachers: PLS-SEM Approach," Sustainability, MDPI, vol. 14(20), pages 1-24, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2383-:d:1049644. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.