Template-Type: ReDIF-Article 1.0

Author-Name: Marta Somogyvari
Author-Workplace-Name: University of Pecs
Author-Email: somogyvari.marta@ktk.pte.hu


Title: Financial Exclusion in the Digital Payment Space

Abstract: The digitalisation of payment systems is accelerating and appears unstoppable.
Today, we use mixed payment systems based on cash and digital money, but an
increasing number of central banks are exploring the possibility of introducing
central bank digital currency and full digitalisation. The greatest obstacle to this is
not only the increase in the amount of cash in circulation, but also the situation of
those social groups that do not use electronic payment methods and are excluded
from financial services. There are several reasons for the latter, including economic
and intellectual access difficulties, low levels of digital and financial literacy, banks'
business policies and difficulties in accessing digital infrastructure. Subsidising digital
access and various educational training programmes can help reduce financial
exclusion, but the most impactful solution may be developments that use artificial
intelligence to replace face-to-face contact. This requires rapid, safe, transparent
innovations that take into account the specific characteristics of the heterogeneous
groups affected by financial exclusion.

Classification-JEL: E42, D14, G20, G53
Keywords: financial exclusion, electronic payment systems, financial literacy, digital
finance, cash usage, payment infrastructure, bank of the future
Pages: 65-85.
Volume: 20
Issue: 4
Year: 2021
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-20-4-st3-somogyvari.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:20:y:2021:i:4:p:65-85.