Role of digital financial service adoption and financial inclusion on sustainable development for the future generations

Abstract As digital financial services (DFS) gain prominence globally, understanding their impact on economic development and sustainability is essential. This study investigates the influence of DFS on Sustainable Development Goal 8 (SDG8), focusing on decent work and economic growth. This study is conducted in the context of Bangladesh to provide a clearer and more grounded contextual framing of the analysis. The study uses PLS-SEM to determine the direct and mediating effects, and fsQCA to measure the particular combinations of these variables that are essential to attain high degree of decent work and economic growth. The study is based on a sample of 444 respondents ( N = 444), enhancing methodological transparency and contextual clarity. PLS-SEM results indicate financial literacy, trust in digital finance, and use of digital payments, with the exception of access to capital determine the adoption of digital financial services, which subsequently improve digital financial inclusion. Digital financial service adoption and digital financial inclusion have a positive impact on decent work and economic growth but the relationship is mediated by financial inclusion. The high level of decent work and economic growth had three solutions proposed by the results of the fsQCA, respectively. The findings are consistent with Endogenous Growth Theory in demonstrating how technological innovations can lead to long-term economic growth and confirming the Technology Acceptance Model in emphasizing the importance of user acceptance in the realization of the latter. This paper is the methodological complement of PLS-SEM and fsQCA. Therefore, these findings imply that policymakers and financial institutions should prioritize enhancing digital financial services and financial literacy to drive economic growth and improve labor conditions, ensuring that these initiatives are accessible and effectively adopted across diverse socioeconomic groups.