Population structure and digital financial inclusion

Purpose The aim of this article is to empirically examine the impact of population structure on digital financial inclusion after controlling for gross domestic product per capita growth, inflation, unemployment, institutional governance quality and bank stability. Design/methodology/approach The data are analysed for 216 countries from 2004 to 2023 using the two-stage system GMM regression methodology. Findings Digital financial inclusion is higher in urban and young populations and in countries with a rapid population growth rate. Digital financial inclusion is lower in vulnerable and non-vulnerable populations. Interaction analyses show that institutional quality increases digital financial inclusion in the rural population while high inflation constrains it. High unemployment worsens digital financial inclusion in the older population. Digital financial inclusion is higher among the vulnerable population during periods of high inflation. Strong institutional quality and a high unemployment rate lead to higher digital financial inclusion in the non-vulnerable population. Practical implications Macroeconomic and institutional factors play an important role in encouraging digital financial inclusion in various population segments. Originality/value Existing studies have not examined the effect of population structure on digital financial inclusion.