Understanding the role of Digital Banking Services in Enhancing Financial Inclusion

Abstract

The digital banking services (DBS) have emerged as a pivotal force in advancing financial inclusion, reshaping the global-financial landscape by providing underserved populations with access to essential financial services. This review paper explores the transformative role of digital banking platforms, such as mobile banking, online payment systems, and fintech innovations, in bridging the financial gap among marginalized communities. By examining adoption of digital technologies, the paper highlights their impact on reducing the transaction costs, enriching financial literacy, and fostering economic growth. It also delves deeper into the challenges faced, such as digital literacy barriers, cybersecurity concerns, and infrastructural limitations, which hinder seamless integration of digital banking in certain regions. The review synthesizes existing literature to provide a comprehensive understanding of how digital banking services act as catalysts for financial empowerment and sustainable development. The findings underscore the potential of digital banking to promote equitable financial inclusion while advocating for strategic policy interventions and technological advancements to overcome prevailing obstacles.