Subject. The article addresses the effectiveness of digital innovations in financial inclusion in the Southern Federal District of Russia. Objectives. The aim is to assess the impact of digitalization on the process of financial inclusion in Southern Russia. Methods. The study rests on the analysis of secondary data obtained from the Bank of Russia and regional financial institutions. These included quantitative data on the spread of banking networks, financial inclusion indices, and the adoption of digital financial services in Southern Russia. Furthermore, I conducted a survey of existing literature on financial inclusion and digitalization to provide context and theoretical background. I also applied descriptive statistical methods to identify and analyze patterns and trends in the data, and comparative analysis to assess regional differences in financial inclusion and digitalization in Southern Russia. Results. The study revealed significant regional differences in the availability of digital financial services. The survey found a growing trend towards the adoption of digital payment methods, with a marked increase in the use of payment cards and mobile banking services. However, the pace of digitalization was uneven across regions, influenced by factors such as demographic structure, economic development, and cultural practices. Conclusions. A customized approach that takes into account the unique socio-economic characteristics of each region is critical to bridging the digital divide in financial services. This study contributes to understanding the complex relationship between digitalization and financial inclusion in a region with diverse socioeconomic conditions, provides insight for policymakers and financial institutions on how to design strategies for inclusive and sustainable financial development.
Demirguc-Kunt A., Klapper L., Singer D. et al. The Global Findex Database 2017: Measuring Financial Inclusion and the FinTech Revolution. Washington DC, World Bank, 2018. URL: Link
Sarma M., Pais J. Financial Inclusion and Development. Journal of International Development, 2011, vol. 23, iss. 5, pp. 613–625. URL: Link
Beck T., Demirguc-Kunt A., Levine R. Finance, Inequality and the Poor. Journal of Economic Growth, 2007, vol. 12, pp. 27–49. URL: Link
Frame W., Wall L., White L. Technological Change and Financial Innovation in Banking: Some Implications for FinTech. Federal Reserve Bank of Atlanta Working Papers, 2018, vol. 2018-11. URL: Link
Brunnermeier M.K., Eisenbach T.M., Sannikov Y. Macroeconomics with Financial Frictions: A Survey. NBER Working Paper, 2012, no. 18102. URL: Link
Tashtamirov M.R. Sostoyanie bankovskoi konkurentsii v Rossii na sovremennom etape: monografiya [The state of banking competition in Russia at the present stage]. Grozny, Kadyrov Chechen State University Publ., 2023, 122 p.
Jack W., Suri T. Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution. American Economic Review, 2014, vol. 104, no. 1, pp. 183–223. URL: Link
Lavrukhin E.M. [Digital financial inclusion as a driver of economic development]. Aktual'nye voprosy sovremennoi ekonomiki = Actual Issues of Modern Economy, 2023, no. 5, pp. 69–75. (In Russ.)
Remizova A.A., Dmitrenko E.A. [Ecosystems of Russian banks and their role in making digital services available to rural areas]. Voprosy innovatsionnoi ekonomiki = Russian Journal of Innovation Economics, 2022, vol. 12, no. 4, pp. 2669–2682. URL: Link (In Russ.)
Ayyagari M., Demirguc-Kunt A., Maksimovic V. Financing of firms in developing countries: Lessons from research. Policy Research Working Papers, 2012. URL: Link
Jentzsch N. Financial Privacy: An International Comparison of Credit Reporting Systems. Springer, 2007, 295 p. URL: Link
Mishura A.V., Ageeva S.D. [Availability of bank’s offices in the Russian regions: Estimation of the role of distances and other factors]. Region: Ekonomika i Sotsiologiya = Region: Economics and Sociology, 2019, no. 4, pp. 73–92. (In Russ.) URL: Link
Bruhn M., Love I. The Real Impact of Improved Access to Finance: Evidence from Mexico. The Journal of Finance, 2014, vol. 69, iss. 3, pp. 1347–1376. URL: Link
Levkina E.V., Bukhtiyarova A.Yu. [The current state of State regulation of the availability of digital financial services in the Russian Federation]. Finansovyi menedzhment = Financial Management, 2021, no. 5, pp. 97–105. (In Russ.)
Tagarov B.Zh. [Information efficiency of digital financial ecosystems]. Finansovaya zhizn' = Financial Life, 2023, no. 2, pp. 36–39. (In Russ.)
Bataev A.V. [Assessing the effectiveness of digital financial institutions]. Finansovyi menedzhment = Financial Management, 2021, no. 3, pp. 56–67. (In Russ.)
Adzhimet G.Kh., Gafarova S.S. [Improving financial accessibility in remote and sparsely populated regions of the SFD and NCFD]. Uchenye zapiski Krymskogo inzhenerno-pedagogicheskogo universiteta = Scientific Notes of the Crimean Engineering and Pedagogical University, 2020, no. 2, pp. 54–60. (In Russ.)
Lapina E.N. [Assessment of financial accessibility in the Stavropol Territory]. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions, 2020, vol. 5, no. 12, pp. 98–106. (In Russ.) URL: Link
Tashtamirov M.R. [Financial Innovations and Digital Technologies in Banking: An Institutional Perspective]. Vestnik Chechenskogo gosudarstvennogo universiteta im. A.A. Kadyrova = Bulletin of Kadyrov Chechen State University, 2023, no. 2, pp. 57–70. (In Russ.)
Prokop'eva E.L., Bushkov A.N. [Methodology for assessing the accessibility of financial services]. Bankovskoe delo = Banking, 2023, no. 2, pp. 36–40. (In Russ.)
