Role of digital banking on financial inclusion in nepal

Abstract

The paper evaluates the role of digital banking in supporting financial inclusion in Nepal with the following five services purposed, such as mobile banking, internet banking, automated teller machines (ATMs), e-wallets, and agent banking. The study will employ a quantitative method in this context with a descriptive and inferential statistical instrument such as correlation or regression analysis to assess the association between these services and financial inclusion. Employees across different parts of Nepal were sampled to acquire a variety of user experiences. The findings indicate that all five variables of digital banking have a statistically significant positive relationship with financial inclusion. Most of the respondents responded positively indicating that mobile banking, internet banking, and e-wallet services were very effective and useful, especially in some provinces where the services were most appreciated. It shows that they are being widely used and do play a major role in promoting the accessibility of financial services. ATM services had a moderate and significant association with financial inclusion and agent banking had the lowest association, indicating that there might be low coverage or usage within rural unde rserved places. The study concludes, digital banking services significantly contributes in enhancing financial inclusion in Nepal, particularly through mobile and internetbased platforms. It recommends additional investment on digital infrastructure, user education, and specific policies to boost the under performance areas in financial inclusion like the agent bankingsystem, hence creating equitable access to financial services to every part of the country.

Keywords: Financial Inclusion, Mobile Banking, Internet Banking, ATMs and Agent Banking service, Digital Banking