The impact of the development of financial inclusion on the level of banking competitive advantage (An Applied Study on the Listed Banks in Palestine Exchange During the Period 2014-2018)

Abstract

The study aimed to measure the development of financial inclusion and its impact on the level of competitive advantage of the banks listed on the Palestine Exchange during the period (2014 - 2018), by measuring the level of financial inclusion in Palestine, and measuring the level of banking competitive advantage of banks listed on the Palestine Exchange, in addition to Analyze and evaluate the impact of the development of financial inclusion on enhancing the banking competitive advantage of banks listed on the Palestine Exchange. In order to achieve the objectives of the study, the analytical descriptive method was used in the theoretical part, either, in the applied part that related to the benchmark study; was used the quantitative methodology by using an Eviews statistical software basically to apply all statistical and standard methods, which represent data on a set of banks during a certain period of time. The results of the study indicated that: Financial inclusion indicators (ATMs, number of bank branches, the capacity of deposits as a percentage of GDP, and the capacity of facilities as a percentage of GDP) that justify 52.4% of the change that occurs in the indicators of competitive advantage at the level of affiliated banks in the Palestine Stock Exchange. While 47% is a result of other factors. The results also showed that there is no statistically significant effect at the level of 0.05 for financial inclusion indicators (access to financial services (number of bank branches) on the Level of Banking Competitive Advantage (rutern in equity, market share of deposits). The study came up with several recommendations, the most important recommendation is; the necessity to promote the concepts of financial inclusion with its various indicators in the Palestinian society, through an awareness campaign to explain the concept of financial inclusion and its dimensions, and that the Bank's management should employ financial inclusion tools to adapt and respond quickly to the changing environmental conditions surrounding the banking work environment By achieving the changing desires of customers through advanced technical methods that are introduced into the banking business to reduce the costs of providing the service, and accessibility