EVALUATING THE IMPACT OF DIGITAL BANKING ON FINANCIAL INCLUSION IN PAKISTAN
DOI:
https://doi.org/10.58352/tis.v50i1.977Abstract
In developing countries like Pakistan, most of the population lives in rural areas and has a lower literacy rate; as a result, they lack knowledge regarding financial services, their use, and benefits. This study observed and examined digital banking role in financial inclusion in Pakistan. The study observe different factors which are responsible for low digital literacy in Pakistan, for this purpose a mixed method approach has been used via interviews of bank professionals and fintech experts. The study emphasized the importance of the latest digital platforms such as, banking apps, instant payment facilities, and mobile wallets in providing facilities of financial services. The study findings show that there is a strong positive relationship between the growth and development of digital banking and financial inclusion indicators. The research finds that there are some obstacles that make it difficult to use digital banking services properly in rural areas as compared to urban areas. These obstacles include digital illiteracy, lack of internet services, lack of trust and faith in banking applications, threat of data theft, and gender disparity. All these issues need to be solved.
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