THE DYNAMICS OF RURAL URBAN FINANCIAL INCLUSION GAP: A CASE STUDY OF DISTRICT SWAT

Abstract

Financial inclusion plays a vibrant role of encouraging economic development by maintaining easy access to financial services for all sectors of the society. However, a significant disparity exists among rural and urban areas, often delaying the inclusive growth. This study scrutinizes the dynamics of rural-urban financial inclusion gap, in case of Swat district as a case study. The study observes the key factors contributing to the disparities, including infrastructural limitations, socioeconomic factors, and digital literacy. The primary data was collected through surveys, interviews, and focus group discussions with stakeholders, including households, local financial institutions, and policymakers. The study reveals that urban areas in Swat exhibit higher levels of financial inclusion due to better access to banking infrastructure, digital financial services, and awareness programs. Conversely, rural areas face challenges such as limited access to financial institutions, cultural constraints, and inadequate technological adoption. The findings highlighted the need for targeted policy interventions, such as escalating banking networks, improving financial literacy programs, and promoting inclusive financial technologies to bridge the rural-urban gap. This study contributes to the broad dissertation on the financial inclusion by providing thoughtful understandings for policymakers and financial institutions motivation to create a more reasonable financial environment by developing the regions.