OPPORTUNITIES FOR MANAGING HOUSEHOLD EXPENDITURES AND REDUCING POVERTY THROUGH DIGITAL FINANCIAL TECHNOLOGIES

Abstract

Digital financial technologies (DFTs) — encompassing mobile banking, electronic payment platforms, fintech applications, and blockchain-based services — have emerged as transformative instruments for household financial management and poverty alleviation in developing economies. This article investigates the causal mechanisms through which DFTs enhance budget planning, reduce transaction costs, improve access to credit, and foster financial inclusion among low-income households. Drawing on a synthesis of empirical literature, case studies from South and Central Asia, and data from global financial inclusion indices (2018–2024), the study employs a mixed-methods analytical framework to assess the magnitude and conditions of DFT-mediated poverty reduction. Findings reveal that mobile money adoption is associated with a 12–18% reduction in per-capita expenditure on financial intermediation and a statistically significant improvement in household savings rates. The article further identifies critical enabling conditions — digital literacy, regulatory infrastructure, and connectivity — and proposes a policy framework for scaling DFT adoption in transitional economies such as Uzbekistan. The study contributes to the growing body of evidence linking fintech innovation to sustainable development Goal 1 (No Poverty) and Goal 10 (Reduced Inequalities).