Digital Banking: A Gateway to Financial Inclusion – A Comparative Analysis of Algeria and Malaysia-

Laouamri, Badreddine Aymen; Chalour, Ouissem

مجلة العلوم الإدارية والمالية
Volume 9, Numéro 1, Pages 108-127
2025-06-30

Digital Banking: A Gateway To Financial Inclusion – A Comparative Analysis Of Algeria And Malaysia-

Authors : Laouamri Badreddine Aymen . Chalour Ouissem .

Abstract

Financial inclusion and access to banking services are two key pillars of economic development, particularly in developing countries. Algeria and Malaysia have made significant progress in recent years in modernizing and developing their banking sectors through digitalization, with the goal of expanding financial inclusion. This paper provides an overview of the current state and reality of digital banking and financial inclusion in Algeria and Malaysia. Digitalization initiatives by both countries and financial institutions, such as banks, are discussed, such as the introduction of mobile banking services and the promotion of electronic payment methods. The impact of financial technology on accelerating financial inclusion will also be examined. A descriptive comparative approach was used in this study. This paper analyzes these challenges and provide recommendations on how Algeria can accelerate the digitalization of financial services to enhance financial inclusion, compared to Malaysia. However, internet and smartphone penetration rates and the use of banking services, both digital and non-digital, remain relatively low in Algeria relative to its population, especially in rural areas. This is due to cultural barriers, lack of trust in electronic payment systems, a tendency to deal in cash, and a lack of digital awareness compared to Malaysia.