Digital Financial Inclusion: Covid-19 Pandemic as a Catalyst for Adoption

t. In the last decade, the emergence of FinTech has played a crucial role in advancing financial inclusion in developing countries. The Covid-19 Pandemic has further accelerated the adoption of digital platforms due to the restrictions on movement. This study aims to investigate the impact of mobile banking on digital financial inclusion (DFI) during the pandemic in low and lower-middle-income countries. The sample of the study comprised 43 countries, and Principal Component Analysis and the OLS method were utilized to determine the DFI index and the factors affecting DFI. The study discovered that formal financial account ownership had an inverse relationship with DFI. Furthermore, the receipt of public and private wages and payment of utilities through digital platforms had a positive effect on DFI. However, financial literacy had a positive impact on DFI. Therefore, the development of digital payment infrastructure and the promotion of financial literacy is crucial to enhance DFI sustainably in low and lower-middle-income countries