Systematic review of constructing demand-sided financial inclusion index: TCCM analysis

This study attempts to provide clearer guidance for developing accurate, comprehensive and policy-oriented demand-side Financial Inclusion (FI) indices. By employing the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) protocol and the TCCM framework, this study systematically reviews 53 research articles extracted from four major databases. The study finds that researchers draw on diverse but fragmented theoretical underpinnings. Empirical studies are concentrated on cross-sectional, secondary data, focusing on general households. Methodologically, simple additive indices with equal weights and binary indicators dominate; some studies employ PCA or MPI methods. The study proposes a theoretical framework of FI and a new demand-side FI Index tailored to capture access, usage and quality dimensions. While several indices capture access from the supply-side, there is a need to understand FI from the perspective of end-users. Addressing this gap, the study is the first to systematically synthesize demand-side index methodologies. Future studies should build comprehensive theories of FI, make use of richer micro-level and longitudinal data, and design indices that capture intensity, quality and outcomes. The study shows clear gaps in existing demand-side FI indices and provides a practical framework to improve their design for research and policy use aligned with Sustainable Development Goals (SDGs).