The sustainable practices of multinational banks as drivers of financial inclusion in developing countries

Fernando Úbeda, Alvaro Mendez () and Francisco Forcadell

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Lack of access to banking is a major problem that contributes to inequality in the developing world. For this reason, financial inclusion is a crucial objective of the Sustainable Development Goals (SDGs). In this study, we investigate the impact of the sustainable practices of multinational banks (MNBs) on financial inclusion. Drawing from a sample of 24 developing countries and 28,089 individuals, we obtain robust evidence about the positive effect of sustainable practices on financial inclusion. We find that MNBs increase the use of mobile bank accounts in the developing world. We also find that when these MNBs follow sustainable practices, the use of mobile bank accounts positively intensifies. These findings are consequential because mobile banking is one of the most powerful means to achieve financial inclusion in the developing world.

Keywords: sustainable banking; finance inclusion; mobile banking accounts; sustainable development goals (search for similar items in EconPapers)
JEL-codes: D63 G00 G20 G21 Q01 Q56 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-dev, nep-env, nep-fdg, nep-fle and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://eprints.lse.ac.uk/115063/ Open access version. (application/pdf)

Related works:
Journal Article: The sustainable practices of multinational banks as drivers of financial inclusion in developing countries (2023)
Working Paper: The sustainable practices of multinational banks as drivers of financial inclusion in developing countries (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:115063

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