Journal of
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Forum | Papers » Digital financial divide, new technologies and pandemic: a perfect storm in the European financial system?

Digital financial divide, new technologies and pandemic: a perfect storm in the European financial system?

Greta Benedetta Ferilli, Valeria Stefanelli, Egidio Palmieri, Stefano Miani
September 2023 - n. 9
Keywords: Banche, FinTech, pandemia, clienti, digital financial divide
Jel codes: G53, G21, I22, I25

In the landscape of the technological-digital changes that are affecting the banking sector, the paper investigates the impact of financial, exogenous, and socio-structural factors on the digital financial divide (Dfd) of European customers in the period 2006-2021, using the random effects model. The results highlight how FinTech spread acts as a mitigating factor of the digital divide in access to financial services; conversely, when it is observed in conjunction with the pandemic shock, FinTech expansion acts as an accelerator of individuals’ digital divide in financial matters. These findings draw the attention of institutions, supervisory authorities, and practitioners to the importance of outlining guidelines and policy actions to protect and support customers in using digital financial services.

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