The Impact on Financial Inclusion in The Era of Covid-19: A Case of Developing Countries

Abstract

The world still has a large unbanked population, which regularly contributes to unbanked transactions. The problem is a lack of trust, financial insecurity, and knowledge about the products and services of financial inclusion. Financial inclusion provides timely and cost-effective access to financial products and services like loans and credit facilities to low-income vulnerable groups. COVID-19 has badly affected all the world's economies and caused them to suffer a great recession, which makes it essential to include the unbanked population in the net of financial inclusion. This study aims to measure the impact of COVID-19 on financial inclusion in developing countries by taking data from 2017 to 2020. The results concluded that increased fintech technology, such as mobile money services during COVID-19, increased financial technology. People started using mobile accounts during COVID-19 to avoid the risk of getting infected by this novel virus.