Banking digitalization in Spain: How branch closures and digital barriers reshape financial inclusion

This paper examines the impact of banking digitalization in Spain, focusing on the consequences of branch closures and digital barriers for financial inclusion. Using panel data from the Survey on Equipment and Use of Information and Communication Technologies in Households (2017–2021), a logit mode...

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Main Authors: Carlos Martínez de Ibarreta, Aurora Ruíz-Rúa, Covadonga Gijón, Fernando Fernández-Bonilla
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Digital Business
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666954425000146
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author Carlos Martínez de Ibarreta
Aurora Ruíz-Rúa
Covadonga Gijón
Fernando Fernández-Bonilla
author_facet Carlos Martínez de Ibarreta
Aurora Ruíz-Rúa
Covadonga Gijón
Fernando Fernández-Bonilla
author_sort Carlos Martínez de Ibarreta
collection DOAJ
description This paper examines the impact of banking digitalization in Spain, focusing on the consequences of branch closures and digital barriers for financial inclusion. Using panel data from the Survey on Equipment and Use of Information and Communication Technologies in Households (2017–2021), a logit model with random effects is estimated to analyse the determinants of e-banking adoption. The findings reveal that a lower density of bank branches per 1000 inhabitants significantly increases the propensity to use e-banking. However, digital financial inclusion remains uneven, with age, digital skills, gender, and geographic location playing critical roles in adoption patterns. While the COVID-19 pandemic accelerated e-banking uptake, structural inequalities persist, particularly among older adults and rural populations. Additionally, despite rising e-banking adoption, engagement with advanced digital financial services (e.g., stock trading, insurance, loans) remains limited, suggesting that digital financial literacy gaps continue to hinder full participation in digital banking. These findings highlight the need for targeted financial education programs, improved digital infrastructure, and hybrid banking models that ensure accessibility for vulnerable populations.
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issn 2666-9544
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publishDate 2025-06-01
publisher Elsevier
record_format Article
series Digital Business
spelling doaj-art-697f3087c206429fb2fc9356cbdd957b2025-08-20T02:27:19ZengElsevierDigital Business2666-95442025-06-015110011910.1016/j.digbus.2025.100119Banking digitalization in Spain: How branch closures and digital barriers reshape financial inclusionCarlos Martínez de Ibarreta0Aurora Ruíz-Rúa1Covadonga Gijón2Fernando Fernández-Bonilla3ICADE – Universidad Pontificia de Comillas, Rey Francisco, 4, 28008 Madrid, SpainUNED – Faculty of Economics, Senda del Rey, 11, 28040 Madrid, SpainUNED - Faculty of Laws, Obispo Trejo, 2, 28040 Madrid, Spain; Corresponding author.UNED – Faculty of Economics, Senda del Rey, 11, 28040 Madrid, SpainThis paper examines the impact of banking digitalization in Spain, focusing on the consequences of branch closures and digital barriers for financial inclusion. Using panel data from the Survey on Equipment and Use of Information and Communication Technologies in Households (2017–2021), a logit model with random effects is estimated to analyse the determinants of e-banking adoption. The findings reveal that a lower density of bank branches per 1000 inhabitants significantly increases the propensity to use e-banking. However, digital financial inclusion remains uneven, with age, digital skills, gender, and geographic location playing critical roles in adoption patterns. While the COVID-19 pandemic accelerated e-banking uptake, structural inequalities persist, particularly among older adults and rural populations. Additionally, despite rising e-banking adoption, engagement with advanced digital financial services (e.g., stock trading, insurance, loans) remains limited, suggesting that digital financial literacy gaps continue to hinder full participation in digital banking. These findings highlight the need for targeted financial education programs, improved digital infrastructure, and hybrid banking models that ensure accessibility for vulnerable populations.http://www.sciencedirect.com/science/article/pii/S2666954425000146Aging populationBanking digitalizationDigital divideE-banking adoptionFinancial inclusionPanel data analysis
spellingShingle Carlos Martínez de Ibarreta
Aurora Ruíz-Rúa
Covadonga Gijón
Fernando Fernández-Bonilla
Banking digitalization in Spain: How branch closures and digital barriers reshape financial inclusion
Digital Business
Aging population
Banking digitalization
Digital divide
E-banking adoption
Financial inclusion
Panel data analysis
title Banking digitalization in Spain: How branch closures and digital barriers reshape financial inclusion
title_full Banking digitalization in Spain: How branch closures and digital barriers reshape financial inclusion
title_fullStr Banking digitalization in Spain: How branch closures and digital barriers reshape financial inclusion
title_full_unstemmed Banking digitalization in Spain: How branch closures and digital barriers reshape financial inclusion
title_short Banking digitalization in Spain: How branch closures and digital barriers reshape financial inclusion
title_sort banking digitalization in spain how branch closures and digital barriers reshape financial inclusion
topic Aging population
Banking digitalization
Digital divide
E-banking adoption
Financial inclusion
Panel data analysis
url http://www.sciencedirect.com/science/article/pii/S2666954425000146
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AT auroraruizrua bankingdigitalizationinspainhowbranchclosuresanddigitalbarriersreshapefinancialinclusion
AT covadongagijon bankingdigitalizationinspainhowbranchclosuresanddigitalbarriersreshapefinancialinclusion
AT fernandofernandezbonilla bankingdigitalizationinspainhowbranchclosuresanddigitalbarriersreshapefinancialinclusion