ABSTRACT
Financial inclusion is essential for economic development, providing individuals and firms access to fundamental services such as savings accounts, credit, and insurance. Despite its relevance, according to the Word Bank data, nearly 1.5 billion adults worldwide still lack access to a formal bank account and almost 2 billion do not have access to credit, with the majority in developing countries. This lack of access limits
their economic opportunities and perpetuates inequality. Promoting financial inclusion is crucial for driving sustainable economic growth, improving equal opportunities, and strengthening a country’s financial resilience in these turbulent times. Financial and technological literacy play a fundamental role in advancing inclusion. Equipping individuals with these skills enables them to make well-informed financial decisions and effectively utilize digital financial services. This research provides quantitative evidence, through panel data analysis, of the importance of technological and financial literacy in determining financial inclusion, alongside education. It also reveals that, on the supply side, a robust infrastructure for digital financial services—particularly through mobile phones—is a prerequisite for formal savings and credit. Additionally, mitigating the impact of asymmetric information, a characteristic of the financial sector, through credit bureaus is crucial. On the demand side, both digital and financial competencies and employment resilience positively correlate with financial inclusion. The institutional attributes of a country are also fundamental.