The Impact of Financial Literacy through Electronic Banking Services on Financial Inclusion

Abstract

This study aims to measure the impact of financial literacy regarding electronic banking services on financial inclusion in Libya. This is achieved through a comprehensive analysis of the dimensions of financial literacy, namely: financial awareness or education, financial skills, and financial experience, in addition to demographic factors. The study also aims to test the extent to which the theoretical assumptions align with the actual financial literacy of commercial bank customers and the level of financial inclusion in Libya.This was accomplished using a questionnaire designed based on international indicators from the Organisation for Economic Co-operation and Development (OECD), the International Financial Literacy Network (INFE), and the G20.  The study sample consisted of Libyan commercial bank customers in the Green Mountain region, using their current accounts at branches of commercial banks operating in the area.Statistical methods from the Stata 17 software package were used to analyze the questionnaire responses. The study also examined the impact and relationship between variables using a multiple regression model. The study concluded by comparing the extent to which its results aligned with the main assumptions of financial literacy theory and financial inclusion.The study reached several key conclusions, most notably that its findings align with the hypotheses of financial literacy and financial inclusion theory presented in Ozili's studies (2020 and 2025). The results also indicate an impact of digital financial literacy dimensions on financial inclusion, in addition to the exclusion of certain segments of the population from financial services offered by banks due to the lack of some of these services, as well as a weakness in the level of digital financial literacy among some customers.