The Link Between Digital Skills and Financial Inclusion—Evidence from Consumers Survey Data from Low-Income Areas

Vik, Pal; Kamerade, Daiga; Dayson, Karl

Abstract

Financial and digital inclusion are key consumer policy agendas for governments globally. Yet, despite the importance of online interfaces to manage finances and make payments, the link between financial and digital inclusion remains under-researched. This study analyses the link between digital and financial inclusion drawing on data from a survey conducted of 922 adults in United Kingdom in 2018. The results suggest that the active use of banking services depends on digital skills. The level of self-rated internet proficiency predicts a variety of ways in which consumers use financial services in the management of their finances, including contactless payments, bank transfers and the use of multiple banking services. This holds even when controlling for socioeconomic and demographic characteristics. Conversely, household income is more important as a determinant than digital skills in checking account balance online. This possibly reflects that liquidity constrained consumers generally prefer to monitor their spending using cash as this provides more precise information on their spending and remaining balance.

Citation

Vik, P., Kamerade, D., & Dayson, K. (2024). The Link Between Digital Skills and Financial Inclusion—Evidence from Consumers Survey Data from Low-Income Areas. Journal of Consumer Policy, 47(3), 373-393. https://doi.org/10.1007/s10603-024-09567-w

• Journal Article Type: Article
• Acceptance Date: Apr 8, 2024
• Online Publication Date: May 3, 2024
• Publication Date: Sep 1, 2024
• Deposit Date: Apr 9, 2024
• Publicly Available Date: May 4, 2025
• Journal: Journal of Consumer Policy
• Print ISSN: 0168-7034
• Publisher: Springer Verlag
• Peer Reviewed: Peer Reviewed
• Volume: 47
• Issue: 3
• Pages: 373-393
• DOI: https://doi.org/10.1007/s10603-024-09567-w
• Publisher URL: http://link.springer.com/journal/10603