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on Financial Literacy and Education |
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Issue of 2026–06–22
eight papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Ozili, Peterson K |
| Abstract: | Accelerating digital finance transformation initiatives across African countries is essential to develop the African continent. Using the conceptual discourse method and the global findex data, this article explores the on-going digital finance transformation in Africa, the benefits for digital financial inclusion in Africa as well as the challenges that lie ahead. The article emphasises the importance of the digital finance transformation in Africa and urges for coordination with stakeholders to accelerate the use of digital financial services in African countries. It also emphasises the need to balance digital finance transformation initiatives with the risks. This study contributes to ongoing discussions about the role of digital finance in transforming nations. |
| Keywords: | digital finance, financial inclusion, Africa, open banking, digital financial inclusion, fintech, digital public infrastructure, DPI, mobile money, financial literacy, MPesa, eNaira, flutterwave |
| JEL: | G21 G23 O3 O31 O33 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128972 |
| By: | Ozili, Peterson K |
| Abstract: | This article explores financial inclusion and the increase in formal account inactivity. It examines the formal account inactivity problem, how it delays the benefits of financial inclusion, the risks posed by formal account inactivity and solutions to reduce formal account inactivity. It was argued that countries with a high level of financial inclusion, in terms of formal account ownership, will reap the benefits that accompany financial inclusion which includes poverty reduction, stimulating entrepreneurship, increased financial security, reduced economic inequality, improved wellbeing and increased economic growth. However, these benefits may not be realized if there is an increasing number of inactive formal accounts. |
| Keywords: | financial inclusion, inactive formal accounts, account inactivity, digital financial inclusion, mobile money account, bank account, risk, dormant account |
| JEL: | G20 G21 G23 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128973 |
| By: | Arvind Ashta |
| Abstract: | Artificial intelligence (AI) is emerging as a transformative force in microfinance and financial inclusion, addressing long-standing barriers such as credit invisibility, high operational costs, and limited access to formal financial services. This paper systematically examines AI applications across key financial domains (payments, savings, lending, insurance, investments) highlighting how machine learning, natural language processing, and generative AI are enabling innovative solutions tailored to the needs of marginalized populations. Drawing on contemporary research and case studies from the Global South, the analysis demonstrates AI’s potential to democratize financial services through alternative credit scoring, automated underwriting, and adaptive tools. However, the deployment of AI also presents significant challenges, including algorithmic bias, proxy discrimination, privacy violations, and the risk of exacerbating digital divides. The paper underscores the need for robust governance frameworks, ethical oversight, and inclusive policies to mitigate these risks and ensure that AI-driven financial inclusion serves the most vulnerable without creating new forms of exclusion. Future directions include advancing fairness-aware AI, improving transparency, and fostering cross-sector collaboration to align technological innovation with social justice and human dignity. |
| Keywords: | Artificial Intelligence; Microfinance; Financial Inclusion; Machine Learning; Alternative Credit Scoring; Algorithmic Bias; Digital Divide; Ethical AI; Global South |
| JEL: | G21 G23 O16 O33 D81 I25 C45 C55 |
| Date: | 2026–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:sol:wpaper:2013/408010 |
| By: | Yoon Jae Ro (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | India is undergoing a major digital transformation through its government-backed Digital Public Infrastructure (DPI), which has notably enhanced financial inclusion and made public services more accessible. Key innovations like digital IDs and mobile payment systems have helped millions. Yet, gaps in digital access persist, indicating the need for targeted efforts—especially in underserved areas. This opens up valuable opportunities for South Korea and India to collaborate, combining their strengths in technology to bridge these divides and support inclusive digital growth. |
| Keywords: | India; Digital Transformation; DPI |
| Date: | 2025–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:022492 |
| By: | DIAKITE, Nanamoudou; DIALLO, Ibrahima; SENE, Omar; SENE, Babacar |
| Abstract: | This paper examines whether mobile money reduces gender gaps in financial autonomy across six Sahelian countries using Afrobarometer Round 9 data (2021-2023, N=6, 540). Instrumenting adoption with distance to traditional financial services, we find pronounced heterogeneity: mobile money increases women's autonomy by 11 percentage points in Senegal (26% gap reduction) and 16 points in Sudan (38% reduction), with no detectable effects in four other countries. This variation correlates with ecosystem maturity, agent density, and regulatory quality. Mechanisms include transactional discretion, informal credit access, and enhanced security. Transformative impacts require 10-14 years ecosystem maturation and agent density above 1 per 2, 000 inhabitants. Digital finance advances women's empowerment only under specific institutional conditions. |
| Keywords: | Mobile money; Gender; Financial inclusion; Instrumental variables; Sub-Saharan Africa; Sahel; Women empowerment; Heterogeneous effects |
| JEL: | G21 J16 O33 O55 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:129244 |
| By: | Ali, Amjad; Iram, Wafaria; Alam, Mehboob |
| Abstract: | This study examines the dynamic relationships between financial globalization, entrepreneurship development, and economic growth across 18 Asian nations from 2013 to 2024. The results reveal that financial globalization significantly enhances entrepreneurial activity primarily by improving access to capital, fostering a better regulatory environment, and increasing financial literacy. Furthermore, entrepreneurship is found to be an effective driver of GDP growth, especially when accompanied by technology adoption, workforce skills development, flexibility, and infrastructure investment. While the study highlights the general positive impact of financial globalization and entrepreneurship, it also acknowledges variations due to institutional weaknesses and uneven market competition among countries. The findings offer nuanced insight into how globalization, supported by strong institutions and targeted policy interventions, can promote sustainable development. Based on empirical analysis, this research provides practical guidance for policymakers seeking to design inclusive growth strategies based on global financial integration and to foster robust entrepreneurship ecosystems. |
| Keywords: | Financial Globalization, Entrepreneurship Development, Economic Growth |
| JEL: | G2 O4 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128750 |
| By: | Asmae Idali (Innovation, Responsabilités et Développement Durable (INREDD) - UCA - Université Cadi Ayyad = Cadi Ayyad University [Marrakech]); Zakaria Fakhri (Innovation, Responsabilités et Développement Durable (INREDD) - UCA - Université Cadi Ayyad = Cadi Ayyad University [Marrakech]); Jamal Rafia (Innovation, Responsabilités et Développement Durable (INREDD) - UCA - Université Cadi Ayyad = Cadi Ayyad University [Marrakech]); Mustapha Ziky (INREDD - Innovation, Responsabilités et Développement Durable - UCA - Université Cadi Ayyad = Cadi Ayyad University [Marrakech]) |
| Abstract: | This article empirically examines the relationship between the digitalization of financial practices and tax revenues in Morocco. Financial inclusion is analyzed through its operational dimension, with a focus on the digitalization of banking services, particularly digital payments. This focus is justified by the growing role of these instruments in ensuring the traceability of economic transactions, which facilitates a more accurate identification of tax bases. The Moroccan context provides a relevant framework for assessing how financial technology reforms directly affect state revenue collection mechanisms. Methodologically, using quarterly data from 2011 (Q1) to 2024-Q4), the analysis employs the robust Autoregressive Distributed Lag (ARDL) model, carefully selected for its capacity to simultaneously examine long-run cointegration relationships and short-run adjustment mechanisms among the studied variables. In terms of findings, the retained model reveals a long-run cointegration relationship between the digitalization of financial practices, real GDP, and tax revenues, confirming that the expansion of digital payments contributes positively to public resource mobilization. The error correction mechanism indicates a rapid adjustment process with 70.66% of short-term deviations are absorbed each quarter. This adjustment speed suggest that the financial digitalization constitutes a structural driver of fiscal performance, extending beyond its role in social inclusion, emerging as a structural lever for sustained budgetary performance. This study contributes to the empirical literature and provides policymakers with actionable insights to design coordinated fiscal implications of financial technology. Such recommendations emphasize the need for institutional coordination to maximize fiscal gains from technological adoption and enhance overall tax system efficiency |
| Abstract: | Résumé Le présent article analyse empiriquement la relation entre la digitalisation des usages financiers et les recettes fiscales au Maroc. L'inclusion financière y est appréhendée à travers sa dimension opérationnelle, centrée sur la digitalisation des services bancaires et notamment les paiements digitaux. Cette focalisation se justifie par le rôle croissant de ces instruments dans la traçabilité des transactions économiques, laquelle favorise une meilleure identification des assiettes fiscales. Sur le plan méthodologique, l'estimation repose sur le modèle autorégressif à retard échelonné (ARDL), choisi pour sa capacité à examiner simultanément les relations de cointégration à long terme et les mécanismes d'ajustement de court terme entre les variables étudiées sur la période 2011(T1) – 2024(T4). En termes de résultats, le modèle retenu dans cette étude met en évidence une relation de long terme entre la digitalisation des usages financiers, le PIB réel et les recettes fiscales, confirmant que le développement des paiements digitaux contribue positivement à la mobilisation des ressources publiques. L'analyse dynamique révèle une correction rapide des déséquilibres : 70, 66 % des écarts de court terme sont résorbés à chaque trimestre. Cette vitesse d'ajustement démontre que la digitalisation des services bancaires ne relève pas uniquement d'une logique d'inclusion sociale, mais s'impose comme un levier structurel de performance budgétaire. En explicitant ces canaux de transmission, cette étude enrichit la littérature empirique et fournit aux pouvoirs publics des éléments d'analyse concrets pour concevoir des politiques fiscales coordonnées, aptes à renforcer l'efficacité du système tout en accompagnant la transition numérique. Mots clés : Paiement digital, services financiers digitaux, recettes fiscales, ARDL Abstract This article empirically examines the relationship between the digitalization of financial practices and tax revenues in Morocco. Financial inclusion is analyzed through its operational dimension, with a focus on the digitalization of banking services, particularly digital payments. This focus is justified by the growing role of these instruments in ensuring the traceability of economic transactions, which facilitates a more accurate identification of tax bases. The Moroccan context provides a relevant framework for assessing how financial technology reforms directly affect state revenue collection mechanisms. Methodologically, using quarterly data from 2011 (Q1) to 2024-Q4), the analysis employs the robust Autoregressive Distributed Lag (ARDL) model, carefully selected for its capacity to simultaneously examine long-run cointegration relationships and short-run adjustment mechanisms among the studied variables. In terms of findings, the retained model reveals a long-run cointegration relationship between the digitalization of financial practices, real GDP, and tax revenues, confirming that the expansion of digital payments contributes positively to public resource mobilization. The error correction mechanism indicates a rapid adjustment process with 70.66% of short-term deviations are absorbed each quarter. This adjustment speed suggest that the financial digitalization constitutes a structural driver of fiscal performance, extending beyond its role in social inclusion, emerging as a structural lever for sustained budgetary performance. This study contributes to the empirical literature and provides policymakers with actionable insights to design coordinated fiscal implications of financial technology. Such recommendations emphasize the need for institutional coordination to maximize fiscal gains from technological adoption and enhance overall tax system efficiency. Keywords: Financial digitalization; Digital payments; Tax revenues; Cointegration, ARDL model |
| Keywords: | Digital payment, tax revenues, ARDL, Financial digitalization, services financiers digitaux, recettes fiscales, Paiement digital |
| Date: | 2026–05–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05620284 |
| By: | Carlosama Morejón, Pablo Andrés |
| Abstract: | This thesis analyzes the possibility of creating a national public blockchain as a tool to regain degrees of economic sovereignty in dollarized Ecuador. While dollarization brought stability after the inflationary storm of the 1990s, it generated fiscal rigidity, dependence on remittances, exposure to external shocks, and a financial system that barely addresses the inclusion needs of popular sectors. The research proposes a sovereign digital infrastructure enabling payments, secure information storage, document management, token issuance, and even online elections with full cryptographic security. Based on international experiences (Sand Dollar, eNaira, Drex) and Ecuador's failed electronic money experiment (2014-2018), the thesis designs a technical architecture called "EC-Soberano Ledger" with BFT-PoS consensus, distributed governance, self-sovereign identity (SSI), and ISO 20022 interoperability. The proposal includes a regulatory framework with reforms to the Monetary Code and the creation of a National Digital Infrastructure Authority (ANID). The conclusions suggest that Ecuador faces a historic window of opportunity to combine clear laws, massive digital literacy, progressive pilots, and shared governance to build a digital fabric that restores maneuverability within dollarization. |
| Keywords: | Dollarization; Economic sovereignty; Public blockchain; Financial inclusion; Digital currency; Ecuador; CBDC; Monetary policy; Distributed ledger technology |
| JEL: | E42 E58 F36 G28 O17 O33 O54 |
| Date: | 2026–09–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128686 |