IMPACT OF MOBILE BANKING ADOPTION ON FINANCIAL INCLUSION IN DEVELOPING ECONOMIES

Abstract

This study examines the impact of mobile banking adoption on financial inclusion in developing economies, highlighting its transformative role in expanding access to financial services. Drawing on global data trends and regional case studies from Sub-Saharan Africa, South Asia, and Latin America, the research demonstrates how mobile banking has reduced geographical and infrastructural barriers, enabling millions of previously unbanked individuals to participate in the formal financial system. The study integrates key theoretical frameworks such as the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) to explain adoption behavior, emphasizing factors like perceived usefulness, ease of use, and social influence. Findings indicate that while account ownership has significantly increased, challenges persist in terms of active usage, financial literacy, and trust in digital systems. Innovations such as mobile money platforms, interoperable payment systems, and AI-driven credit scoring have further enhanced financial inclusion, yet disparities remain, particularly among women and the elderly. Behavioral barriers, regulatory complexities, and the access-usage gap continue to limit the full potential of digital finance. The study concludes that mobile banking is a powerful catalyst for financial inclusion, but its long-term success depends on inclusive policies, user-centric design, and sustained efforts to improve digital literacy and trust.