The Effect Of Digital Technologies On Financial Inclusion: The Case Of The Emerging European Economies

Abstract

The study aims to empirically research the effect of digital technologies on financial inclusion. The paper examined emerging European countries and discussed the period from 2010-2019. A panel data analysis was performed. Six different panel data models were constructed. The number of bank branches per 100.000 people and the number of debit cards per 1.000 people are used in the models as indicators of financial inclusion. Fixed broadband subscriptions per 100 people, active mobile broadband subscriptions per 100 people, and the proportion of Internet users are used as indicators of digital technologies. The estimation of the models confirmed that digital technologies have a significant and negative effect on the number of bank branches per 100.000 people and a significant and positive effect on the number of bank cards per 1.000 people. According to results the utilize of digital technologies has a positive effect on financial inclusion, especially in the banking sector. This situation will allow countries to improve the degree of financial inclusion.