The Future of Digital Financial Inclusion in Brunei Darussalam

This study explores the future of digital financial inclusion in Brunei, emphasizing the interplay between technological advancement and financial access. It provides an overview of Brunei's financial technology landscape and outlines future scenarios for digital financial inclusion. Brunei presents a unique case as a small, open, and resource-rich economy grappling with an uneven digital divide. Despite a high internet penetration rate of 95% and universal 4G coverage, digital financial inclusion remains limited by structural and socio-economic barriers. Although the government has introduced various policies to promote digital financial inclusion, adoption rates and transaction values remain low. Our analysis reveals that only 65.7% of Brunei's population holds a bank account, with even lower rates of online banking and debit card ownership. Although the digital payment market has expanded significantly, the average transaction value per user has declined, underscoring disparities in adoption. The study also highlights connectivity gaps, particularly in rural areas, where only 70% of households have reliable internet access. We identify five key drivers of change to build inclusive digital ecosystems and offer policy recommendations for economies grappling with an uneven digital divide. Future research should further explore how inclusive digital ecosystems can advance full financial inclusion.