The Role of Availability of Financial Institutions and Financial Innovation on the Financial Inclusion: Does Digital Finance Moderate this Linkage?
- Thanh Thao Nguyen , Faculty of Graduate Studies, Academy of Finance, Hanoi, Vietnam
- Mai Pham Quynh , Faculty of Economics, Academy of Finance, Hanoi, Vietnam
- Hau Ngo Van , Financial and Accounting Consultancy and Training Center, Academy of Finance, Hanoi, Vietnam
- Huong Le Thi , Faculty of Accounting, Academy of Finance, Hanoi, Vietnam
- Luong Ngo Van , Faculty of Accounting, Academy of Finance, Hanoi, Vietnam
- Tien Dung Nguyen , Thanh Cong branch - Joint Stock Commercial Bank for Foreign Trade of Vietnam, Hanoi, Vietnam
- Dan Nguyen Van , Faculty of Economics, Academy of Finance, Hanoi, Vietnam
Keywords:
Availability of financial institutions, digital finance, financial innovation, financial inclusion, population growth, ASEAN countries, economic growth..
Abstract
In recent years, financial inclusion has been the most critical factor for effective economic growth (EG), which could be attained through the availability of financial institutions and financial innovation. Due to its increased significance, this study investigates the effect of the availability of financial institutions, digital finance, and financial innovation on financial inclusion in ASEAN nations. In addition, this study investigates the moderating effect of digital finance on the availability of financial institutions, financial innovation, and financial inclusion in ASEAN nations. Population and economic growth were also used as control variables in the study. From 2007 to 2021, the researchers utilized secondary data extracted from the World Development Indicators (WDI) database. The researchers also employed the cross-sectional augmented distributed latency (CS-ARDL) method to examine the relationship between the variables. Financial inclusion was positively correlated with the availability of financial institutions, digital finance, population growth, and financial innovation. In addition, digital finance moderates the relationship between the availability of financial institutions, financial innovation, and financial inclusion substantially. The research guides regulators in developing regulations to enhance financial inclusion through digital finance, financial innovation, and financial institutions.