The Role of Digital Banking in Advancing Financial Inclusion: A Systematic Literature Review

Abstract

This article reports the results of a systematic literature review examining the potential of digital banking as a means of promoting financial inclusion. The use of digital financial technologies-mobile banking, financial technology (fintech) innovations, and digital payment mechanisms has increased financial inclusion by transcending geographical dispersion, high costs of transaction and non-availability of physical banking infrastructure. Results show that digital banking services facilitate financial inclusion through improved service access, affordability and convenience, particularly for the underserved and marginalized groups. Technologies such as artificial intelligence, big data analytics, and cyber-defense models also make possible the provision of customized and safe financial services. But the review also found ongoing barriers such as digital illiteracy, infrastructure deficiency, regulatory confusion and social resistance. Research underscores the importance of a mixed model which offers a combination of digital innovations and physical access points to leave no one behind. Further Future researchers should extend digital banking and financial inclusion models to incorporate structural and technological barriers affecting underserved populations and stakeholders must invest in digital literacy, infrastructure, and supportive regulatory frameworks.