A Systematic Literature Review on Impacts of Financial Inclusion and Digital Banking on Economic Growth: The Mediating Role of Financial Institutions (OpenAlex (recherche mondiale))

Summary

• An initial literature search across scholarly databases yielded 150 articles at the first stage.p.3
• A total of 32 articles published between 2021 and 2026 met the inclusion criteria for detailed review.p.3
• The vote-counting analysis showed that 31 out of 32 studies, or 96.9%, found a positive effect of digital financial inclusion on economic growth.p.3
• Only 1 study, representing 3.1%, found a nonlinear or conditional effect, while 0 studies reported a negative effect.p.3
• Quantitative methodology was used in 54% of the reviewed articles.p.13
• Mixed research design was utilized in 31% of the selected studies.p.13

Key insights

1. Financial institutions act as a mediator transforming digital financial innovations and financial inclusion into economic activities.p.3
2. Financial inclusion completely mediates the effect of financial innovation on economic growth in Sub-Saharan Africa.p.16
3. Digital banking fosters financial inclusion by reducing transaction costs and eliminating geographic constraints.p.20
4. Literature gaps persist due to a lack of empirical evidence on the mediating role of financial institutions in low-income countries like Ethiopia.p.3
5. Contextual variables such as institutional quality, regulatory effectiveness, and digital infrastructure dictate the success of digital financial inclusion.p.3
6. No studies in the systematic review reported a negative relationship between digital financial inclusion and economic growth.p.3