The Digital Financial Inclusion Index: A Cross-Country Comparison

Tugba Guz () and Gulden Poyraz
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Tugba Guz: İstanbul Yeni Yüzyıl Üniversitesi, Sağlık Yönetimi Bölümü, İstanbul, Türkiye
Gulden Poyraz: Bandırma Onyedi Eylül Üniversitesi, Dış Ticaret Bölümü, Balıkesir, Türkiye

Journal of Economic Policy Researches, 2023, vol. 10, issue 1, 157-180

Abstract: The increasing impact of digitalization on the financial system and widespread use of technological devices such as smartphones that facilitate participation and access to the financial system in almost every segment of society have been this study’s motivating factor for creating a Digital Financial Inclusion Index (DFII). By following the methodology the Organisation for Economic Co-operation and Development used to create a combined index, the study examines the DFI levels and developments of 75 countries whose data can be accessed over a DFII calculated for the years 2017 and 2021 in comparison with current data. Within three years, the index values of the countries included in the DFII are seen to have increased or remained the same. High-income countries are seen to rank at the top of the DFII while the less developed countries with low income levels are found at the bottom. In addition, in order to compare the DFII values of the 75 countries covered in the index according to their income levels, the study divided the countries into four groups based on the World Bank income group classifications of high-income, upper-middle-income, lower-middle-income, and low-income brackets. Within three years, no significant difference was seen to have occurred between the average index values of countries in each income group, with very small increases occurring in their index values. In this process, lower-middle income countries increased their average DFII values by a very small margin of 0.02 compared to the high-income countries and of 0.01 compared to the upper-middle-income countries.

Keywords: Digital financial inclusion index; Digitization; Digital finance; Finance; Financial inclusion JEL Classification : F65; O31; O33 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ist:iujepr:v:10:y:2023:i:1:p:157-180

DOI: 10.26650/JEPR1180972

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