THE EFFECT OF FINANCIAL INCLUSION ON THE FINANCIAL PERFORMANCE OF THE COMMERCIAL BANKS IN THE DEVELOPING COUNTRIES
Abstract - This research aims to measure the impact of financial inclusion on the financial performance of the commercial banks in 11 developing countries. In order to achieve this objective, we entered the data from year 2004 till 2021 from Federal Reserve Economic Data (FRED), Statista, World Bank. The result showed that the Number of ATM, and branches was extensively increased in 2021 due to the need to improve the availability of the financial inclusion and to reach all the population. The result also showed that there is a positive relationship between the availability of the financial inclusion through the ATM and the branch, and the financial performance. Therefore the high the availability of the financial inclusion, the higher the financial performance in the developing countries. Moreover, there is a positive relationship between the usage of the financial inclusion and the financial performance of the commercial banks in the developing countries.
Keywords - Financial inclusion, digital transformation, financial performance, commercial banks, number of ATM, number of branches.