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The COVID-19 pandemic has sped up the digital shift in finance, leading to more people having access to financial services and presenting new opportunities and challenges. This chapter looks at how digital finance has changed during the pandemic, focusing on how it’s made financial services more accessible, helped lessen gender disparities, boosted digital financial understanding, and dealt with potential risks. Since the pandemic, the use of digital financial services has grown rapidly, helping to overcome geographical limitations and increase financial inclusion. This change has been especially helpful for marginalized groups and women, significantly reducing the gender gap in financial inclusion. Meanwhile, understanding digital finance literacy has become crucial for effectively using digital financial services. However, the move towards digitization brings its own challenges, especially new financial risks. These risks require increased consumer awareness, better education, and stricter regulation. The chapter concluded by saying that the path of digital finance after the pandemic is a mix of opportunities and challenges. As a result, we need a careful and balanced approach to increase financial inclusion while also protecting against potential financial risks, ultimately aiming for a fairer, more stable, and more inclusive financial landscape.

Artificial intelligence (AI) has already changed the financial industry by increasing the accessibility and inclusiveness of financial services. While acknowledging the challenges posed by AI, this chapter provides insights into the positive impact of AI in promoting financial inclusion. AI has greatly enhanced credit scoring and risk assessment through the use of non-traditional data sources, enabling individuals with limited credit histories and low incomes to access loans and financial products. In addition, the implementation of AI-powered customer identification and verification systems has enhanced security measures while reducing the risk of fraudulent activity. However, the digital divide still remains a challenge to achieve wide financial inclusion. Limited access to technology and digital skills keeps some people from fully benefiting from AI-powered financial services. Access to loans through AI systems may seem convenient, but it also raises concerns about excess borrowing and the resulting unsustainable debt levels. In the age of digital finance, privacy and data security are still key issues. The chapter concludes by highlighting that more research is needed to address these challenges. By fully understanding the potential of AI, as well as its limitations, the power of technology can be harnessed to create more inclusive economic opportunities for everyone, especially those living in poorer areas.