Gaps In Digital Financial Inclusion: Lessons For G20

This policy brief aims to construct and analyze indices for access and usage dimensions of digital financial inclusion (DFI) in G20 economies, incorporating demographic characteristics such as gender, age, income, education, and occupation. The G20’s role in formulating policies to promote access and usage ofdigital financial services supports broader objectives of growth and inclusivity. Bridging gaps in the digital financial ecosystem is crucial for integrating financially excluded populations into formal systems, aligning with the United Nation’s goal of accelerating progress towards achieving the 2030 Sustainable Development Goals. A disaggregated analysis of digital financial inclusion gaps aids policymakers in understanding societal penetration of financial inclusion measures via digitization. Utilizing the World Bank’s Global Findex Database for 2011-2021, the study employs survey results from G20 economies to construct indices using Principal Component Analysis (PCA). The empirical analysis focuses on comparing aggregate access and usage indices, examining disparities in digital financial inclusion across demographics, and exploring the relationship between the gaps and SDGs. The study aims to provide tailored policy recommendations based on its findings.