Digital Financial Inclusion and Bank Competitiveness in Algeria

This study investigates the impact of digital financial inclusion on bank competitiveness in Algeria, using panel data from 13 banks over the period 2011-2024.Digital financial inclusion is measured through indicators such as the number of bank accounts, ATMs, and digital payment transactions.Bank competitiveness is evaluated using financial performance indicators including return on assets and net interest margin.The analysis employs fixed-effects panel regression to account for bank-specific heterogeneity and robust standard errors to address potential heteroskedasticity.The results indicate that higher levels of digital financial inclusion significantly enhance bank competitiveness, with larger and more liquid banks benefiting the most.The study also highlights the role of macroeconomic conditions, such as GDP growth, in strengthening this relationship.These findings provide empirical evidence supporting the strategic importance of digital financial inclusion for banks in emerging economies.Policymakers and bank managers can leverage these insights to design interventions and technological investments that improve financial access while boosting competitiveness.This research contributes to the understanding of how digital financial services drive performance in the banking sector.