Digital capability, physical access, and financial inclusion among rural and urban respondents in Punjab, Pakistan

Purpose This study examines how information and communication technology (ICT) capability and distance from financial access points are associated with financial inclusion and banking-app use, and whether these relationships differ between rural and urban respondents in Punjab, Pakistan. Methods Cross-sectional survey data were collected from 300 adults recruited through non-probability convenience sampling in Lahore, Daska, and Sheikhupura. Fractional-logit models estimated the association between standardized ICT capability and a bounded Financial Inclusion Intensity Index. Ordered-probit models examined banking-app use across distance categories, while interaction terms tested rural-urban differences. Alternative estimators, outcomes, index weights, ICT dimensions, and distance coding assessed robustness. Results Rural respondents reported lower average financial inclusion, ICT capability, banking-app use, and nearby access. A one-standard-deviation increase in ICT capability was associated with a 0.0819-point increase in the inclusion index ( p < 0.001); this association did not differ by area ( p = 0.876). Distance categories were jointly associated with app use ( p = 0.0047), and the distance profile differed between rural and urban respondents ( p = 0.0002). Conclusions Digital capability and physical access remain complementary components of financial inclusion policy. Coordinated investments in digital skills and accessible service points may reduce observed access gaps. The non-probability, cross-sectional design precludes causal or population-wide inference.