THE ROLE OF DIGITAL BANKING IN PROMOTING FINANCIAL INCLUSION IN RURAL AREAS OF SINDH, PAKISTAN

Authors

  • Dr. Qazi Mumtaz Ahmed
  • Zahid Hussain
  • Ghulam Murtaza Solangi

Abstract

This study examines ,the role of digital banking in promoting, financial inclusion in rural Sindh, Pakistan, and investigates whether digital literacy mediates this relationship. Using a cross-sectional survey of N = 400 adults across four, rural districts (Tharparkar, Badin, Thatta, Dadu), Partial Least Squares Structural Equation Modeling (PLS-SEM) tested direct and indirect effects. Results show that Digital Banking Accessibility (DBA) positively affects Financial Inclusion (FI) (β = 0.36, p < 0.001) and strongly predicts Digital Literacy (DL) (β = 0.55, p < 0.001). Digital Literacy in turn significantly predicts Financial Inclusion (β = 0.42, p < 0.001), and partially mediates the DBA → FI link (indirect effect β = 0.23, p < 0.001). The model explains 58% (R² = 0.58) of the variance in FI. Policy implications include, targeted digital literacy programs, capacity building for branchless agents, and strengthened trust and security, mechanisms to accelerate inclusive digital finance under NFIS 2024–2028.

Keywords: Digital Banking, Financial Inclusion, Digital Literacy, Branchless Banking, Rural Sindh, Pakistan

Downloads

Published

2025-11-09

How to Cite

Dr. Qazi Mumtaz Ahmed, Zahid Hussain, & Ghulam Murtaza Solangi. (2025). THE ROLE OF DIGITAL BANKING IN PROMOTING FINANCIAL INCLUSION IN RURAL AREAS OF SINDH, PAKISTAN. Journal of Management Science Research Review, 4(4), 878–900. Retrieved from https://jmsrr.com/index.php/Journal/article/view/224

Issue

Vol. 4 No. 4 (2025): Journal of Management Science Research Review

Section

Articles