Recalibrating the role of financial inclusion in promoting digital literacy: An evidence from Pakistani banking industry

Abstract

Financial inclusion and digital literacy are considered key to economic development and bringing the population out of poverty. Keeping this goal in mind the study aims to test the impact of financial inclusion in promoting digital literacy through the banking industry. In this study, the data is taken from a period of 2005 to 2023 has been used respectively. The panel data analysis is used for financial inclusion to examine the impact of financial inclusion on digital literacy in Pakistan. The results show that the banking industry has an overall significant impact and the banking industry leads to a change in Deposits, population, and Loans whereas the GDP grows with the growth in the banking industry. Financial inclusion can be used as a tool for digital literacy. The study has noteworthy implications for future researchers and policymakers. Policymakers should formulate policies for promoting financial inclusion and governments in developing countries like Pakistan should launch programs and support initiatives for financial inclusion to promote digital literacy. Digital literacy can help in embracing financial services and people can proficiently navigate and execute digital transactions. Future researchers should focus on how financial inclusion and digital literacy are changing the lives of ordinary people.