ABSTRACT:
Technologies has the capacity to improve financial inclusion and provide access to financial services in Palestine. The study examines mobile phone ownership, internet accessibility, and FinTech literacy as factors influencing digital banking adoption in Palestine, employing logistic regression, chi-square tests, and random forest classifiers. The logistic regression model indicates that mobile phone owners and internet users are more inclined to utilize digital banking services. Financial literacy and consumer education are essential for FinTech adoption, as is awareness. The Chi-Square test reveals no significant correlation between digital banking usage and geographic region, indicating that location does not substantially influence adoption. The Random Forest model effectively predicts digital banking adoption across three consumer segments: early adopters with high technological access, moderately educated users with limited internet connectivity, and individuals with low digital literacy and technology access. The report advocates for policies aimed at enhancing mobile phone accessibility, internet infrastructure, and financial literacy to foster inclusive digital banking in Palestine. In summary, while digital banking holds the potential to transform Palestinian financial services, it must address technical, educational, and regulatory challenges. This research provides policymakers, financial institutions, and regulators with actionable insights to enhance financial inclusion and the advancement of digital banking in Palestine.
KEYWORDS:
Digital Banking, FinTech, Financial, Palestine
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