Has financial inclusion made the financial sector riskier?

Purpose This paper aims to examine whether high levels of financial inclusion is associated with greater risk. Design/methodology/approach The study uses regression methodology estimate the effect on Findings findings reveal that higher account ownership risk through non-performing loans and high-cost inefficiency in sector developed countries, advanced countries transition economies. Increased use debit cards, credit cards digital finance products reduced but not for economies developing countries. also show combined increased formal improves efficiency while reduces insolvency Research limitations/implications offers several implications policy regulation. It suggests policies would reduce poses sector. Originality/value recent interest unintended consequences policy-driven some parts world raising concern about risks may introduce Little known pose