The state of financial inclusion research on developing countries

Abstract

This study proposes a research agenda on financial inclusion (FI) in developing countries based on a synthesis of the literature using a combination of structured literature review and bibliometrics. The analysis is based on 183 peer-reviewed journal articles extracted from Scopus. We found that the literature can be organized into four broad themes: (1) conceptualization and impacts of FI, (2) user perceptions and adoption, (3) role of financial innovation and private sector financial institutions, and (4) role of public institutions and public policy in FI. Further, the literature is dominated by empirical studies with little theory-focused studies. The literature is fragmented, and the evidence is mixed and contested. The social implications of FI need to be studied within specific institutional contexts and care must be exercised when applying successful models from one context to the next. The research agenda is informed by a proposed conceptual model, labelled the financial inclusion diamond.