Financial Services Digitainability: Financial Inclusion and Efficiency in EU Countries

Abstract

Digitalization of financial services is one of the biggest challenges of the last decade, both in the EU and globally. The rapid development of digital technologies undoubtedly creates a favourable environment for significant progress in the financial sector, moreover, the Global Financial Crisis (GFC) and the pandemic have served as additional catalysts. However, several aspects on the way to financial services digitainability are still insufficiently explored. Considering the latest trends in the financial sector and advances in digital transformation, this study aims to identify the key drivers for the implementation of digital financial services and initiatives that managers should pursue to effectively transform business processes. The methodological base of the research consists of an extensive analysis of current publications in such areas as digital transformation, sustainable development, digital financial services, etc. The article investigates two aspects of financial sustainability: financial inclusion and operational efficiency of financial institutions, based on Eurostat data on financial services provided in the EU during 2011 - 2021, the Digital Economy and Society Index variables, and European Central Bank data on operational expenses. Correlation and regression analysis methods are used to study the relationships between variables under investigation, as well as statistical tests to acquire necessary evidence for statistical inferences about the proposed hypotheses. The results of the study provide the possibility to judge current trends in the use of digital financial services in the EU countries, determine the main drivers of sustainable digital financial services, as well as to observe the benefits of digital transformation in the financial sector.