Culture and FinTech in Driving Financial Inclusion: Evidence from Saudi Arabia’s Vision 2030

Abstract

Financial inclusion has emerged as a key policy priority in developing and emerging economies, including Saudi Arabia, due to its strong links to growth, poverty reduction, and social stability. This study aims to examine how cultural factors—financial literacy, Shariah trust, social influence, and risk attitudes—together with FinTech adoption, drive financial inclusion within the framework of Vision 2030. While previous research has largely emphasized supply-side enablers, this study focuses on demand-side cultural mechanisms and integrates digital finance as both a direct determinant and a moderating factor. The analysis draws on survey data from 100 respondents representing different population segments in Saudi Arabia, including women, youth, rural residents, and expatriates. Financial inclusion is measured through a composite index and four binary outcomes: account ownership, digital payments, formal savings, and formal credit. Using ordinary least squares (OLS) and logistic regression models, the study tests five hypotheses linking cultural and demographic variables to inclusion outcomes. Robustness checks, including multicollinearity diagnostics, alternative index specification, subsample analysis, and penalized logit estimation, were conducted to ensure the reliability of results. The findings reveal that financial literacy and FinTech adoption are significant and positive drivers of financial inclusion, particularly in promoting digital payments. Social influence emerges as a consistent barrier, while Shariah trust plays a role in encouraging savings. Risk attitudes significantly predict credit usage, reflecting cautious borrowing preferences. Control variables such as education, income, rural residence, and nationality also shape inclusion patterns. Overall, the study highlights that combining financial literacy with FinTech adoption provides the most effective pathway toward inclusive finance in Saudi Arabia, directly supporting the objectives of Vision 2030.