Poverty Alleviation through Digital and Traditional Finance: Empirical Evidence from Emerging European Economies

This study examines the relationship between digital and traditional
finance-related poverty reduction, including the moderating role of EU membership
in 18 countries (2004–2021) by using panel data regression models. The findings
indicate that the dominant method of poverty reduction through banking
institutions remain traditional financial inclusion instruments, such as bank
accounts and bank branches, while digital financial channels have not yet fully
realized their potential. European Union membership has generated different
poverty and inclusion outcomes as it has strengthened traditional banking while
impacting digital financial access. The study provides valuable insights for policy
interventions, showing how traditional banking structures and digital financial solutions
might play vital roles in addressing different levels of poverty.
The expansionof financial access requires an improved internet banking infrastructure, especially
in EU candidate countries, as well as methods of tackling e-commerce adoption
barriers that benefit disadvantaged populations through digital trade