Role of Digital Banking in Financial Inclusion: A Case of the Pakistan Banking Sector

Abstract

Financial inclusion has become a goal for many countries that are still developing. It helps people get access to financial services and helps the economy grow. In Pakistan many people still don’t have access to banks. This is because of where they live, how money they have and the way the country is set up. New tools in digital banking are making it easier to reach more people with financial services that are easy to use, simple and cheap. This research looks at how digital banking helps people in Pakistan get access to financial services between 2010 and 2024. The research uses data from old reports. These reports come from the State Bank of Pakistan the World Bank, the Pakistan Economic Survey and the Pakistan Telecommunication Authority. The main thing being studied is inclusion. The things that might affect it include banking transactions, mobile banking accounts, internet banking accounts, ATM machines and agents who offer banking without a physical branch. Other things like how the economy is growing how much prices are rising and the cost of borrowing are also looked at. The study uses a method called the ARDL approach to see how these things are connected over time. The study finds that digital banking has made it easier for more people, in Pakistan to access services. It has made it cheaper and easier to get help from banks. It has also reached people who were not connected before. The study says that leaders and banks should keep working on systems and help people learn more about using them. They should also support banking to help more people join the financial system and grow the economy in a better way.