Financial Literacy and Financial Inclusion among Individuals in the Digital Era: A Post-COVID-19 Systematic Critical and Thematic Review of Global Literature (2020–2026)

Abstract

Financial literacy has emerged as a critical driver of financial inclusion, particularly in the wake of rapid digital transformation and the expansion of financial technologies following the COVID-19 pandemic. However, the growing body of literature remains fragmented in terms of conceptualisation, theoretical perspectives, and empirical evidence. This study systematically reviews global literature published between 2020 and 2026 to critically examine the evolving relationship between financial literacy and financial inclusion in the digital era. Guided by the PRISMA 2020 framework, the review synthesises peer-reviewed studies retrieved from Scopus, Web of Science, Science Direct, Emerald Insight, and Google Scholar using predefined inclusion and exclusion criteria. The findings reveal a paradigm shift from viewing financial literacy as a direct predictor of financial inclusion to recognising it as part of a multidimensional framework in which digital financial literacy, financial self-efficacy, financial behaviour, and fintech adoption mediate the relationship, while digital infrastructure, institutional quality, and regulatory environments shape its effectiveness. The review further identifies persistent conceptual inconsistencies, fragmented theoretical applications, and methodological limitations that continue to constrain cumulative knowledge. Based on these findings, the study proposes an integrated conceptual framework that advances a more comprehensive understanding of financial inclusion in the digital era. The review contributes to theory by synthesising contemporary evidence into a coherent explanatory framework, identifies priorities for future research, and provides policy insights for designing integrated financial literacy and digital inclusion strategies that promote inclusive and sustainable financial systems.