| Abstract | Digital financial inclusion has emerged as one of the major policy tools for poverty alleviation
and inclusive development. This study examines the impact of digital and conventional
financial inclusion on inclusive growth in six post-transition countries of the former Yugoslavia
(Bosnia and Herzegovina, Croatia, Montenegro, North Macedonia, Serbia, and Slovenia) from
2003 to 2022.
These countries have increasingly been involved in the integration process within Europe, as
either members or candidates for EU membership. This has resulted from the evolution from a
centrally planned to a free-market economy. These countries are relevant case studies in the
study of topics such as financial integration and regional economics due to the challenges they
are facing structurally, such as access to finance, interoperability, and uneven economic
growth.
The Balkan region’s uneven development, shaped by the post-Yugoslav transition and the
conflicts of the early 1990s, has resulted in persistent institutional, regulatory, and economic
disparities. In this context, the development of Fintech and financial inclusion depends on both
structural factors—such as public financial-sector policies and rapid advancements in
information technology—and behavioral factors, particularly consumers’ willingness to adopt
new financial products and services. Similar challenges have been identified in studies
emphasizing limitations in the adoption, usage intensity, and impact of digital platforms in
fostering innovation and knowledge diffusion in the region.
The former Yugoslav economies provide a particularly relevant setting for examining the
interaction between financial inclusion and regional cooperation. Such coordination is
particularly important for cross-border trade, labor mobility, and financing of small and
medium-sized enterprises, where digital financial services can reduce barriers and facilitate
economic exchange across national borders.
The research explores how digital financial inclusion impacts inclusive economic growth in the
post-transition economies of the former Yugoslavia. The results show that regional policies
need strategies to coordinate digital financial services. Reducing financial fragmentation and
expanding access to financial services can help small and medium-sized enterprises (SMEs)
and create jobs. Systemic regulation, improving digital infrastructure, and improving financial
literacy can help. This is the meaning of integrating digital financial instruments — it is not just
an instrument for development; it also stimulates broad economic
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