Digital Banking Services in Developing Countries: Bridging the Gaps in Financial Inclusion and Economic Growth from the Point of View of Sri Lanka

Abstract

In the twenty-first century, several countries anticipate digitization to drive their economies. Digital banking services are one of the driving forces that enable countries' transitions to the digital economy, boosting financial inclusion and attaining efficient economic growth; yet, most emerging nations are struggling to meet the projected level of growth in this field; as a result, their economic growth is stagnated. This conceptual paper intends to establish a novel model by incorporating major variables that impact the use of digital banking services in future research. Drawing upon previous literature and theoretical frameworks, the paper develops hypotheses. While the banking industry is a pioneer in setting the right background, people's propensity to use these services has a wider influence. Understanding the bigger consequences that restrict development in using these services may thus be crucial. Inconsistencies and inconclusiveness in the research findings and new knowledge emerging due to the ever-evolving FinTech is also a fact of the matter creating a knowledge gap; therefore, the need for research based on new models that consider different variables is significant in fulfilling this knowledge gap.