THE IMPACT OF DIGITAL FINANCIAL INCLUSION ON SOCIO-ECONOMIC DEVELOPMENT IN LOW-INCOME COUNTRIES

Financial inclusion is seen as one of the most powerful tools to enhance socioeconomic development and reduce poverty by allowing individuals to have adequate access to and use various digital financial services that meet their needs. This study examined the influence of all financial inclusion elements, which included Access, Usage, and Quality on Socio-Economic development in 77 low-income countries. Cross-sectional data were gathered from various sources, including the World Bank and the IMF whereas SPSS software was used for analyzing the data and conducting the multiple regression process. Results show that all financial inclusion components have a significant positive impact on socioeconomic development, yet at different levels. Elements of Access and Usage were higher than those of Quality. The study also reveals an important positive association between the aspects of sustainable development, particularly the educational levels of the population and the amount of real income per capita in low-income households. To the best of our knowledge, this is the first study that tests and provides empirical evidence on the impact of financial inclusion on socio-economic development from its three perspectives. The study additionally draws some important insights into the realm of international and sustainable development issues and classifies low-income countries based on their level of socio-economic growth.