Exploring the Impact of Debit Card Ownership on Financial Inclusion in ASEAN+6 Countries

This study examined the impact of debit card ownership on financial inclusion across ASEAN+6 countries. Using panel data from the Global Financial Inclusion Index (Global Findex) spanning multiple years, the research employed panel regression analysis to examine the relationship between debit card ownership and key financial inclusion indicators. Specifically, the study assessed whether debit card ownership influences the likelihood of owning a formal bank account, accessing formal credit, engaging in financial transactions through regulated institutions, owning a mobile money account, and possessing a mobile phone. The findings reveal that debit card ownership significantly increases the likelihood of having a formal bank account, accessing credit, and engaging in financial transactions through regulated financial institutions. However, while mobile money account ownership and mobile phone ownership show positive associations with financial inclusion, their effects are not statistically significant. These results suggest that debit cards remain an important gateway to formal financial services despite the rapid expansion of digital financial technologies in the region. The study highlights the role of debit cards as an accessible and cost-effective financial instrument that lowers transaction costs, reduces dependence on cash-based transactions, and facilitates broader financial participation. The findings also underscore the importance of financial literacy, supportive regulatory frameworks, and banking infrastructure in ensuring that debit card usage translates into meaningful financial engagement. The policy implications suggest that expanding access to debit card, particularly among underserved and rural communities, can be an effective strategy to strengthen financial inclusion and promote inclusive economic development across ASEAN+6 countries.