Financial Inclusion and COVID-19: Opportunities and Challenges

Abstract

The COVID-19 pandemic has sped up the digital shift in finance, leading to more people having access to financial services and presenting new opportunities and challenges. This chapter looks at how digital finance has changed during the pandemic, focusing on how it’s made financial services more accessible, helped lessen gender disparities, boosted digital financial understanding, and dealt with potential risks. Since the pandemic, the use of digital financial services has grown rapidly, helping to overcome geographical limitations and increase financial inclusion. This change has been especially helpful for marginalized groups and women, significantly reducing the gender gap in financial inclusion. Meanwhile, understanding digital finance literacy has become crucial for effectively using digital financial services. However, the move towards digitization brings its own challenges, especially new financial risks. These risks require increased consumer awareness, better education, and stricter regulation. The chapter concluded by saying that the path of digital finance after the pandemic is a mix of opportunities and challenges. As a result, we need a careful and balanced approach to increase financial inclusion while also protecting against potential financial risks, ultimately aiming for a fairer, more stable, and more inclusive financial landscape.

Citation

Yanting, Z. and Ali, M. (2023), "Financial Inclusion and COVID-19: Opportunities and Challenges", Leong, C.-M., Ali, M., Raza, S.A., Puah, C.-H. and Eksi, I.H. (Ed.) Financial Inclusion Across Asia: Bringing Opportunities for Businesses, Emerald Publishing Limited, Leeds, pp. 33-41. https://doi.org/10.1108/978-1-83753-304-620231003