IMPACT OF MOBILE BANKING ON FINANCIAL INCLUSION IN RURAL AREAS

Abstract

The advent of mobile banking has significantly transformed the financial landscape, particularly in rural areas where traditional banking infrastructure remains limited. This paper explores the impact of mobile banking on financial inclusion in rural regions, analyzing how mobile technology is enabling access to essential financial services for underserved populations. By bypassing geographic barriers and reducing transaction costs, mobile banking offers an efficient solution for enhancing financial inclusion. The study examines key factors such as mobile network penetration, digital literacy, and trust in mobile platforms. Additionally, the role of mobile banking in empowering rural communities, improving savings rates, and facilitating access to credit is analyzed. The findings indicate that mobile banking not only provides a gateway to basic financial services but also contributes to economic development by fostering entrepreneurship and improving financial literacy. This paper concludes with policy recommendations for enhancing mobile banking services and ensuring that rural populations fully benefit from digital financial solutions.