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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| Format: | Article |
| Language: | English |
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Elsevier
2025-06-01
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| Series: | Digital Business |
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| 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. |
| format | Article |
| id | doaj-art-697f3087c206429fb2fc9356cbdd957b |
| institution | OA Journals |
| issn | 2666-9544 |
| language | English |
| 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 |
| work_keys_str_mv | AT carlosmartinezdeibarreta bankingdigitalizationinspainhowbranchclosuresanddigitalbarriersreshapefinancialinclusion AT auroraruizrua bankingdigitalizationinspainhowbranchclosuresanddigitalbarriersreshapefinancialinclusion AT covadongagijon bankingdigitalizationinspainhowbranchclosuresanddigitalbarriersreshapefinancialinclusion AT fernandofernandezbonilla bankingdigitalizationinspainhowbranchclosuresanddigitalbarriersreshapefinancialinclusion |