Innovation and inclusivity for economic development [Articol]

Abstract

Purpose of the article: this research explores the link between financial inclusion and financial innovation in selected European countries moderated by digital technology. Methodology: FMOLS method generates consistent and reliable results in coefficient estimation of small samples. DOLS estimators give more effective results in models with small observations and heterogeneous structures Conclusions: The widespread use of financial services will not entail an increase in financial innovation. The newcomers in the financial ecosystem are usually people who lack tech skills or financial literacy. In order to develop a positive connection between FINC and FIN, these factors (skills, literacy, security, personal data status/control, privacy etc.) must be addressed by the regulators at national and European levels. Originality: The increased need for more sustainable development empowered the role of finance in guiding capital flows for activities that limit environmental degradation, improving the ability of future generations to benefit from the same living conditions.