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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
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    References listed on IDEAS

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    Cited by:

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    2. 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.
    3. Adjei Gyamfi Gyimah & Leo Andoh Adjei Gyimah & Bismark Addai, 2026. "Prospecting willingness and the amount to pay for digital payment solutions in the cocoa value chain in Ghana," Future Business Journal, Springer, vol. 12(1), pages 1-15, December.
    4. Kalandi Charan Pradhan & Sumit Kumar & Ritik Sharma, 2025. "Adopting Digital Financial Technology in Madhya Pradesh, Central India: Opportunities, Challenges, and Determinants," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 10599-10638, June.
    5. Verma, Rahul & Chatterjee, Devlina, 2025. "Relative impact of digital and traditional financial inclusion on financial resilience: Evidence from 13 emerging countries," Journal of Economics and Business, Elsevier, vol. 133(C).
    6. Lien, Guan-Jie & Chung, Kuo Cheng & Guo, Hwang Tsuen, 2026. "Evaluating the sustainable development of digital inclusive finance through fuzzy DEMATEL and VIKOR: A dual-perspective approach," Evaluation and Program Planning, Elsevier, vol. 114(C).

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