The Digital Financial Inclusion Index: A Cross-Country Comparison

The increasing impact of digitalization on the financial system and widespread use of technological devices such as smartphones that facilitate participation and access to the financial system in almost every segment of society have been this study’s motivating factor for creating a Digital Financia...

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Main Authors: Tuğba Güz, Gülden Poyraz
Format: Article
Language:English
Published: Istanbul University Press 2023-01-01
Series:İktisat Politikası Araştırmaları Dergisi
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/C3C8710E2B5D4E9DB1CC95F5818A07A6
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author Tuğba Güz
Gülden Poyraz
author_facet Tuğba Güz
Gülden Poyraz
author_sort Tuğba Güz
collection DOAJ
description The increasing impact of digitalization on the financial system and widespread use of technological devices such as smartphones that facilitate participation and access to the financial system in almost every segment of society have been this study’s motivating factor for creating a Digital Financial Inclusion Index (DFII). By following the methodology the Organisation for Economic Co-operation and Development used to create a combined index, the study examines the DFI levels and developmentsof 75 countries whose data can be accessed over a DFII calculated for the years 2017 and 2021 in comparison with current data. Within three years, the index values of the countries included in the DFII are seen to have increased or remained the same. High-income countries are seen to rank at the top of the DFII while the less developed countries with low income levels are found at the bottom. In addition, in order to compare the DFII values of the 75 countries covered in the index according to their income levels, the study divided the countries into four groups based on the World Bank income group classifications of high-income, upper-middle-income, lower-middle-income, and low-income brackets. Within three years, no significant difference was seen to have occurred between the average index values of countries in each income group, with very small increases occurring in their index values. In this process, lower-middle income countries increased their average DFII values by a very small margin of 0.02 compared to the high-income countries and of 0.01 compared to the upper-middle-income countries.
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series İktisat Politikası Araştırmaları Dergisi
spelling doaj-art-2bc9d78a9f684eacbfcd6c2a466e2a4f2025-08-20T03:52:48ZengIstanbul University Pressİktisat Politikası Araştırmaları Dergisi2148-38762023-01-0110115718010.26650/JEPR1180972123456The Digital Financial Inclusion Index: A Cross-Country ComparisonTuğba Güz0https://orcid.org/0000-0003-1644-7803Gülden Poyraz1https://orcid.org/0000-0002-8324-6270İstanbul Yeni Yüzyıl Üniversitesi, Istanbul, TurkiyeBandırma On Yedi Eylül Üniversitesi, Balikesir, TurkiyeThe increasing impact of digitalization on the financial system and widespread use of technological devices such as smartphones that facilitate participation and access to the financial system in almost every segment of society have been this study’s motivating factor for creating a Digital Financial Inclusion Index (DFII). By following the methodology the Organisation for Economic Co-operation and Development used to create a combined index, the study examines the DFI levels and developmentsof 75 countries whose data can be accessed over a DFII calculated for the years 2017 and 2021 in comparison with current data. Within three years, the index values of the countries included in the DFII are seen to have increased or remained the same. High-income countries are seen to rank at the top of the DFII while the less developed countries with low income levels are found at the bottom. In addition, in order to compare the DFII values of the 75 countries covered in the index according to their income levels, the study divided the countries into four groups based on the World Bank income group classifications of high-income, upper-middle-income, lower-middle-income, and low-income brackets. Within three years, no significant difference was seen to have occurred between the average index values of countries in each income group, with very small increases occurring in their index values. In this process, lower-middle income countries increased their average DFII values by a very small margin of 0.02 compared to the high-income countries and of 0.01 compared to the upper-middle-income countries.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/C3C8710E2B5D4E9DB1CC95F5818A07A6digital financial inclusion indexdigitizationdigital financefinancefinancial inclusion
spellingShingle Tuğba Güz
Gülden Poyraz
The Digital Financial Inclusion Index: A Cross-Country Comparison
İktisat Politikası Araştırmaları Dergisi
digital financial inclusion index
digitization
digital finance
finance
financial inclusion
title The Digital Financial Inclusion Index: A Cross-Country Comparison
title_full The Digital Financial Inclusion Index: A Cross-Country Comparison
title_fullStr The Digital Financial Inclusion Index: A Cross-Country Comparison
title_full_unstemmed The Digital Financial Inclusion Index: A Cross-Country Comparison
title_short The Digital Financial Inclusion Index: A Cross-Country Comparison
title_sort digital financial inclusion index a cross country comparison
topic digital financial inclusion index
digitization
digital finance
finance
financial inclusion
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/C3C8710E2B5D4E9DB1CC95F5818A07A6
work_keys_str_mv AT tugbaguz thedigitalfinancialinclusionindexacrosscountrycomparison
AT guldenpoyraz thedigitalfinancialinclusionindexacrosscountrycomparison
AT tugbaguz digitalfinancialinclusionindexacrosscountrycomparison
AT guldenpoyraz digitalfinancialinclusionindexacrosscountrycomparison