The impact of information and communication technology on financial inclusion—based on a global perspective

Abstract

In order to test the effect of information and communication technology (ICT) level on financial inclusion, based on the sample data of countries around the world in 2011, 2014, and 2017, this paper firstly uses the coefficient of variation method and the Euclidean distance method to construct the ICT level index and the financial inclusion index, and then conducts empirical analysis through a linear regression model. Further, a mediating effect model is employed to explore the impact mechanism of the ICT level on financial inclusion. Finally, the impact heterogeneity is explored based on the internal and external characteristics of each country. The empirical results show that: first, the ICT level can effectively improve financial inclusion, but its effects on the width and the depth of financial inclusion are different; second, the ICT level improves a country’s financial inclusion by promoting the improvement and development of the digital payment system; third, the impact of the ICT level on financial inclusion shows significant heterogeneity among different countries or regions with differences in banking structure, economic development level and international financial environment. Last but not least, the conclusions of this paper can help countries or regions to improve financial inclusion in a targeted manner through information and communication technology.