INTRODUCTION:

Financial inclusion refers to the accessibility and availability of financial services to all individuals, particularly those who are underserved or excluded from the formal financial system. It aims to provide essential financial services such as savings accounts, credit, insurance, and payment systems to promote economic growth and reduce poverty. Financial inclusion is crucial for enhancing economic opportunities and improving the overall quality of life for individuals and communities.

Financial inclusion, a term that refers to the universal availability and usage of high-quality financial products and services tailored to different segments of society and businesses of various sizes, is a key aspect of economic development. It aims to ensure that individuals and businesses are not excluded from accessing essential financial services, thereby promoting economic growth and stability. Key components of financial inclusion include integrated marketing tools to raise awareness, access to banking services, and addressing macroeconomic risks that may hinder financial service usage. (De Matteis, 2015)

Awareness and usage of financial services are key to building financial literacy and improving personal financial outcomes. When individuals understand and engage with financial products like savings accounts, loans, and investment options, they can make more informed financial decisions and improve their overall financial well-being. Factors like education, socioeconomic background, and access to information shape this awareness, with higher financial literacy leading to greater confidence in using financial services. This engagement fosters positive financial behaviours—like saving for retirement, managing debt responsibly, and making sound investments—which, in turn, contribute to long-term financial stability and security. (Bazley et al., 2021)

Financial services awareness and usage are crucial for enhancing financial literacy and inclusion. Awareness of financial services enables individuals to make informed decisions regarding banking, investments, and credit products.(Malhotra and Jain, 2017) This understanding is essential as it empowers individuals to manage their finances effectively, reducing the risks associated with financial illiteracy, such as increased debt and poor financial decisions. Moreover, governments are promoting financial inclusion to ensure broader access to these services, which can help alleviate poverty and improve overall financial well-being. (Gui et al., 2018)

Financial awareness is a critical factor influencing the adoption and usage of digital financial services (DFS). The research highlights that individuals with a higher awareness of available DFS options are more likely to engage with these services. This relationship underscores the importance of knowledge and familiarity with financial products, particularly in developing economies like Ghana, where traditional cash transactions have historically dominated. (Van Wielingen et al., 2004)

Statements of Financial Inclusion and Service Usage

The concept of financial inclusion is deeply connected to financial services awareness, as raising awareness is a foundational element in promoting access to and usage of financial products and services. In regions where access to financial services is limited, such as developing countries, awareness initiatives play a crucial role in enabling individuals and businesses to understand the benefits and functionalities of digital financial services (DFS).(Kaur and Hanspal, 2022)

Increased awareness is often an initial step in financial inclusion strategies, which aim to bridge the gap between underserved populations and formal financial systems by providing information about savings, credit, and insurance options. By educating the public and demonstrating the accessibility of these services, financial service providers can reduce hesitation among potential users and address misconceptions or fears about digital platforms. Consequently, heightened awareness drives DFS adoption and supports the broader goal of financial inclusion by encouraging informed participation in the financial system, fostering economic stability, and reducing the prevalence of the informal economy. (Chetanbhai Joshi and Rajpurohit, 2016)

As technology continues to reshape the financial landscape, it is imperative to prioritise financial education and awareness initiatives. Through collaborative efforts between financial institutions, policymakers, and educational organisations, we can foster a more financially literate society that embraces the opportunities presented by modern financial services. (Holik andMulyeni, 2019)

In the context of financial inclusion, financial knowledge plays a significant role in empowering marginalised groups and small and medium-sized enterprises (SMEs) to access and utilise financial services. Studies have shown that higher levels of financial literacy are positively correlated with the use of banking services and financial products, as individuals with better financial knowledge are more likely to engage with formal financial systems. (Kaur Mavi andSambyal, 2019; Kohli et al., 2018)

Moreover, financial knowledge is essential for navigating the complexities of modern financial landscapes, including emerging technologies such as cryptocurrencies. Individuals with a solid understanding of financial principles are better equipped to evaluate and adopt new financial technologies, which can further enhance their financial well-being. (Sulaiman Ebrahima et al., 2024)

Technology awareness is another critical component influencing financial behaviours. The rise of digital banking and financial technology (fintech) has transformed how individuals and businesses access financial services. As digital banking becomes more prevalent, especially among younger populations, it is essential to enhance awareness and education regarding these services. A study titled "Digital Banking Penetration: Impact on Students’ Usage Frequency and Awareness" by Dr. R. Fahima Sultana and Dr. JihenBousrih highlights the need for increased awareness among students, who represent a significant portion of the population. The findings suggest that a strong correlation exists between students' awareness and their frequency of digital banking usage, indicating that education and outreach are vital for promoting digital banking adoption. Awareness of digital financial services (DFS) is a crucial determinant influencing their adoption and usage.(Kohli et al., 2018) The increased awareness positively impacts DFS adoption, contributing significantly to the overall usage levels among different demographic groups. Specifically, awareness is one of the six main factors identified that enhance the likelihood of adopting DFS, alongside effort expectancy, facilitating conditions, transaction costs, security/privacy, and self-efficacy. (Bodhgireand Hassan, 2022)

Targeted campaigns and educational initiatives are necessary to bridge the awareness gap. Financial institutions and policymakers should focus on creating tailored programs that address the specific needs of different demographics, including SMEs and students. This could involve workshops, online courses, and informational resources that enhance understanding of financial products and services. (Jha and Ramesh Naik, 2017)

Moreover, leveraging technology to disseminate information can significantly improve outreach efforts. Social media platforms, mobile applications, and online webinars can effectively educate individuals about financial literacy and the benefits of utilising financial services. (Ilankumaran, 2019)

Importance of Financial Knowledge:

1- Empowerment and Decision-Making:

Financial knowledge empowers individuals and small and medium-sized enterprises (SMEs) to navigate the complexities of the financial landscape. Those with a solid understanding of financial principles are better equipped to manage budgets, save effectively, invest wisely, and assess risks associated with financial products. (Praveena.Fand Dr Y.Hemalatha, 2022)

2- Correlation with Financial Inclusion:

Studies have shown that higher levels of financial literacy are positively correlated with using banking services and financial products. Individuals with better financial knowledge are more likely to engage with formal financial systems, which is crucial for promoting financial inclusion, especially among marginalised groups.(Vidyakala et al., 2018)

3- Navigating Modern Financial Technologies:

As financial technologies, including digital banking and cryptocurrencies, become more prevalent, financial knowledge is essential for evaluating and adopting these innovations. Individuals who understand financial concepts are more likely to leverage these technologies to enhance their financial well-being. (Mittal, 2023)

4- Addressing the Knowledge Gap:

Many SMEs, particularly in developing regions, face challenges due to a lack of financial awareness. For instance, a study indicated that only a small percentage of SME owners had received financial skills training, which hampers their ability to manage their businesses effectively. Bridging this knowledge gap is vital for fostering a more inclusive financial environment.(Grable et al., 2020)

Financial Usage:

The concept of financial usage encapsulates multiple facets of individuals' and institutions' engagement with financial services and products. This engagement encompasses the depth and breadth of digital financial coverage, the utilisation of formal financial services, and the influence of financial knowledge on the adoption of financial technology (FinTech). Furthermore, the phenomenon of financialisation has profound implications for economic and political dynamics, reshaping the structural foundations of society. (Holik and Mulyeni, 2019)

Existing research suggests that the depth of digital financial usage significantly enhances the efficiency of financial systems, particularly in terms of output efficiency. In contrast, the breadth of digital financial coverage contributes to improvements in input efficiency. Geographic variations demonstrate that regions with greater digital financial coverage and utilisation, such as those in eastern regions, exhibit higher levels of financial industry efficiency compared to others. (Shen et al., 2018)

Financial knowledge plays a pivotal role in the adoption of FinTech services. In emerging economies, perceived financial knowledge, rather than objective financial literacy, strongly influences FinTech adoption. Demographically, men and younger individuals are more likely to engage with FinTech services compared to women and older age groups. To foster financial well-being, financial institutions should prioritise the development of user-centric FinTech products, while policymakers should emphasise consumer protection to encourage responsible usage. (Mohammed et al., 2020)

LITERATURE REVIEW:

1. Hamdino Hamdan (2021):

The study investigates the factors influencing financial literacy among micro-entrepreneurs in Sana’a, Yemen, revealing that only 13% of adults in the country possess adequate financial literacy. Through a survey of 220 micro-entrepreneurs, it was found that financial behavior, attitude, and skills have significant positive correlations with financial literacy, while financial knowledge showed a weaker correlation. The research emphasises the need for financial literacy workshops to enhance the financial management capabilities of micro-entrepreneurs, especially in light of Yemen's economic challenges. It acknowledges limitations such as a small sample size and the need for further research in other regions.

2. Isaac Anane (2022):

Anane and Nie (2023) contribute to the literature on the adoption of digital financial services (DFS) by examining factors influencing user engagement with digital technologies in Ghana. Grounded in technology adoption frameworks—such as the Technology Acceptance Model (TAM), Diffusion of Innovations (DOI), and the Unified Theory of Acceptance and Use of Technology (UTAUT)—their study highlights that perceived usefulness, ease of use, social influence, and facilitating conditions are significant determinants of DFS usage. The research emphasises that these factors, along with demographic variables like age, education, and residence (urban or rural), significantly impact DFS adoption. Utilising data from the Ghana Financial Inclusion Insights Survey (GFIIS) with a sample of 3,002 adults, Anane and Nie's findings show that younger, educated individuals are more likely to adopt DFS. The study reveals that perceived benefits, minimal effort, and social and infrastructural support facilitate DFS usage. These insights are crucial for enhancing digital financial inclusion and developing strategies that resonate with Ghana’s diverse demographic segments.

3. Thabiso Sthembiso Msomi (2023):

The study investigates the critical relationship between financial awareness, access to digital finance, and the sustainability of small and medium-sized enterprises (SMEs) in South Africa. A survey of 321 SME owners revealed that many entrepreneurs lack financial skills and awareness, adversely affecting their financial management. The findings indicate that financial awareness and access to digital finance positively correlate with SME sustainability, suggesting that enhancing financial literacy and digital finance access can improve business performance and contribute to economic growth.

STATEMENT OF THE PROBLEM:

Yemen, located on the southern tip of the Arabian Peninsula and bordered by Saudi Arabia and Oman, has a deep historical and cultural heritage rooted in ancient civilisations like the Sabaeans and Himyarites and has historically thrived as a centre for incense trade. Since 2015, a civil war between the Houthi movement and the internationally recognised government has led to widespread destruction and displacement, creating one of the world’s worst humanitarian crises, with about 80% of the population requiring assistance and millions facing severe food insecurity and limited access to healthcare, education, and clean water. The conflict has also devastated the economy, causing hyperinflation, currency devaluation, and extreme poverty, with only about 5% of the population having access to financial services due to low financial literacy, limited trust in banks, and logistical challenges. Social dynamics are complex, as Yemen is home to diverse ethnic and tribal groups, including marginalised communities like the marginalised, who face significant social exclusion. In contrast, gender dynamics further restrict women’s access to financial and economic participation.

RESEARCH OBJECTIVES:

1) To assess the level of awareness of various financial services.

2) To examine the factors influencing the usage of financial services.

3) To evaluate the role of financial literacy in the usage of financial services.

4) To determine the relationship between digital access and financial services usage.

5) To analyse the impact of trust and perceived security on financial services adoption.

HYPOTHESIS OF THE STUDY:

1) H1: There is a significant association between community group (rural workers, urban workers, university boys and girls, self-employed) and knowledge of insurance and pensions.

2) H2: There is a significant association between community group and the frequency of chequebook usage.

3) H3: There is a significant association between community group and frequency of ATM service usage.

4) H4: There is a significant association between community group and the difficulty level in using banking applications.

5) H5: There is a significant association between age group and usage of wallet-based digital payment methods.

6) H6: There is a significant association between educational qualification and the usage of USSD-based digital payment methods.

RESEARCH METHODOLOGY:

The study adopts a quantitative research design, utilising statistical tools to measure the relationships between awareness, usage, and influencing factors of financial services adoption.

Scheduled interviews were distributed to a comprehensive and representative sample, focusing on participants’ awareness, usage, and attitudes toward different financial services. The sample included 260 respondents from diverse demographic backgrounds across urban and rural settings, ensuring a comprehensive understanding of awareness and usage patterns.

Data Analysis:

The results show the number of the registered participants in all groups (55.56%, 0%, 0%, 44.44%) in each group. The registration in rural workers group is observed to be higher than the other group.

Similarly, the unregistered participants in the four group are (28%, 40%, 20%, 12%); the unregistered participants in the first and fourth groups are higher than the other community group. It is observed that there is an association between community groups and the distribution of knowledge of insurance and pensions. The calculated value (16.070) is greater than the table value (12.592), so the null hypothesis is rejected. Therefore, the P-value is (0.013), which is significant at the 5%.

Table 2: Using of Cheque Book VS Community Group

Sr. No.	Community Group	Using of Cheque Book				Total
		Not Used	Sometimes	Frequently
1.	Rural Workers	37	2	3		42
		(88.1)	(4.76)	(7.14)		(100)
2.	Urban Workers	19	4	2		25
		(76)	(16)	(8)		(100)
3.	University Boys and Girls	32	11	1		44
		(72.73)	(25)	(2.27)		(100)
4.	Self-Employed	12	0	0		12
		(100)	(0)	(0)		(100)
Total		100	17	6		123
		Calculated X² Value	Table Value	D.F.	Remarks
		11.594	12.592	6	Significant at 10%

Note: Figures in Parenthesis show Percentages. Source: Primary Data.

It is noted that the percentage of respondents who do not use a chequebook is the highest (100%) at self-employed group, and the lowest is (72.73%) among the respondents who are university boys and girls. The percentage of using a chequebook as sometimes is the highest (25%) at the university boys and girls, and the lowest is (0%) among the respondents who are self-employed. The percentage of using the chequebook as frequently is the highest (8%) at the urban workers, and the lowest is (0%) among the self-employed respondents. It is observed that there is no association between community groups and the rating of using a checkbook. The calculated value (11.594) is less than the table value (12.592), so the null hypothesis is accepted. Therefore, the P-value is (0.072), which is significant at the 10% level.

Table 3: Using of Cheque Book VS Community Group

Sr. No.	Community Group	Using of Cheque Book				Total
		Not Used	Sometimes	Frequently
1.	Rural Workers	37	2	3		42
		(88.1)	(4.76)	(7.14)		(100)
2.	Urban Workers	19	4	2		25
		(76)	(16)	(8)		(100)
3.	University Boys and Girls	32	11	1		44
		(72.73)	(25)	(2.27)		(100)
4.	Self-Employed	12	0	0		12
		(100)	(0)	(0)		(100)
Total		100	17	6		123
		Calculated X² Value	Table Value	D.F.	Remarks
		11.594	12.592	6	Significant at 10%

Note: Figures in Parenthesis show Percentages. Source: Primary Data.

The percentage of using a chequebook as sometimes is the highest (25%) at the university boys and girls, and the lowest is (0%) among the self-employed respondents. The percentage of using the chequebook as frequently is the highest (8%) at the urban workers, and the lowest is (0%) among the self-employed respondents. It is observed that there is no association between the community group and the rating of using a checkbook. The calculated value (11.594) is less than the table value (12.592), so the null hypothesis is accepted. Therefore, the P-value is (0.072), which is significant at the 10% level.

It is noted that the percentage of not using of services (ATMs) is the highest (83.33%) at the rural workers group and self-employed, and the lowest is (60%) among the respondents who are in the urban workers group. The percentage of using services (ATMs) as sometimes is the highest (36%) in the urban workers group, and the lowest is (4.76%) among the respondents who are in the rural workers group. The percentage of rating the using of services (ATMs) as frequently is the highest (11.9%) among the rural workers group, and the lowest is (0%) among the respondents who are self-employed group. It is observed that there is no association between the community group and using of checkbooks. Calculated value (12.462) is less than the critical value (12.592), the null hypothesis is accepted, therefore, the P-value is (0.052), which is significant at 10%.

Table 5: Using Banking Applications VS Community Group

Sr. No.	Community Group	Using Banking Applications						Total
		Difficult		Partially Difficult		Fully Difficult
1.	Rural Workers	28		7		7		42
		(66.67)		(16.67)		(16.67)		(100)
2.	Urban Workers	7		14		4		25
		(28)		(56)		(16)		(100)
3.	University Boys and Girls	7		16		21		44
		(15.91)		(36.36)		(47.73)		(100)
4.	Self-Employed	8		4		0		12
		(66.67)		(33.33)		(0)		(100)
Total		50		41		32		123
Calculated X² Value			Table Value		D.F.		Remarks
37.545			12.592		6		Significant at 5%

Note: Figures in Parenthesis show Percentages. Source: Primary Data.

It is observed from Tablethat the percentage of respondents who find it “difficult to use banking applications” is the highest (66.67%) at rural workers and self-employed groups, and the lowest is (15.91%) among the respondents who are university boys and girls group. The percentage of partially difficult-to-use banking applications is the highest (56%) in the urban workers group, and the lowest is (16.67%) among the rural workers respondents. The percentage of Fully Difficult to use banking applications is the highest (47.73%) at university boys and girls and the lowest (0%) for self-employed group. The results in Table show that there is an association between the community group and using banking applications. The calculated value (12.462) is less than the critical value (12.592), The null hypothesis is rejected, the alternative hypothesis is accepted, therefore; the P-value is (0.000), which is significant at 5%.

It is noticed from Table that the percentage of respondents who do not know about using wallet-based payment digital method is the highest (30.5%) at 18-30 years, and the lowest is (3.33%) among the respondents whose age is 41-50 years.

Table 6: Using Wallet Based Digital Payment Method VS Age

Sr. No.	Age		Using Wallet Based Digital Payment Method				Total
			Don’t Know	Not Used		Used
1.	18-30		43	73		25	141
			(30.5)	(51.77)		(17.73)	(100)
2.	31-40		20	49		13	82
			(24.39)	(59.76)		(15.85)	(100)
3.	41-50		1	26		3	30
			(3.33)	(86.67)		(10)	(100)
4.	Above 50		1	5		1	7
			(14.29)	(71.43)		(14.29)	(100)
Total			65	153		42	260
Calculated X² Value		Table Value			D.F.	Remarks
13.955		12.592			6	Significant at 5%

Note: Figures in Parenthesis show Percentages. Source: Primary Data.

The percentage of respondents who don’t use wallet-based payment digital method is the highest (86.67%) at 41-50 years, and the lowest is (51.77%) among the respondents aged 18-30 years. The percentage of respondents using wallet-based payment digital method is the highest (17.73%) at 18-30 years, and the lowest is (10%) among the respondents aged 41-51 years. It is perceived that there is an association between age and the use of wallet-based digital payment methods. The calculated value (13.955) is greater than the table value (12.592), The null hypothesis is rejected, and the alternative hypothesis is accepted, therefore; the P-value is (0.030), which is significant at 5%.

Table 7: Using USSD-Based Digital Payment Method VS Type of Income

Sr. No.	Type of Income	Using USSD Based Digital Payment Method			Total
Sr. No.	Type of Income	Don’t Know	Not Use	Use	Total
1.	Daily	3	24	7	34
1.	Daily	(8.82)	(70.59)	(20.59)	(100)
2.	Weakly	2	16	4	22
2.	Weakly	(9.09)	(72.73)	(18.18)	(100)
3.	Monthly	40	71	60	171
3.	Monthly	(23.39)	(41.52)	(35.09)	(100)
4.	Seasonally	8	19	6	33
4.	Seasonally	(24.24)	(57.58)	(18.18)	(100)
Total		53	130	77	260
Calculated X² Value		Table Value	D.F.	Remarks
17.691		12.592	6	Significant at 5%

Note: Figures in Parenthesis show Percentages. Source: Primary Data.

It is noted from Table that the percentage of respondents who do not know about USSD digital is the highest (24.24%) at seasonal income type, and the lowest is (8.82%) among the respondents whose income type is daily income. The percentage of people who do not use USSD digital is the highest (72.73%) among income type as weakly income, and the lowest is (41.52%) among the respondents whose income type is monthly income. The percentage of respondents using USSD digital is the highest (35.09%) by monthly income, and the lowest is (18.18%) among the respondents whose income type is weakly and seasonally income. It is perceived that there is an association between the type of income and the using USSD-based digital payment method. Since the calculated value (17.691) is greater than the Table value (12.592), The null hypothesis is rejected, and the alternative hypothesis is accepted, therefore; the P-value is (0.007), which is significant at 5%.

Table 8: Using USSD-Based Digital Payment Method VS Educational Qualification

Sr. No.	Educational Qualification		Using USSD Based Digital Payment Method						Total
			Don’t Know			Not Used		Used
1.	Literacy		0		1			0	1
			(0)		(100)			(0)	(100)
2.	Before Secondary		2		27			1	30
			(6.67)		(90)			(3.33)	(100)
3.	Secondary		2		19			4	25
			(8)		(76)			(16)	(100)
4.	College		56		91			25	172
			(32.56)		(52.91)			(14.53)	(100)
5.	Above College		2		8			9	19
			(10.53)		(42.11)			(47.37)	(100)
6.	Ph.D.		3		7			3	13
			(23.08)		(53.85)			(23.08)	(100)
Total			53		130			77	260
Calculated X² Value		Table Value		D.F.			Remarks
36.531		18.307		10			Significant at 5%

Note: Figures in Parenthesis show Percentages. Source: Primary Data.

It is noticed from Tablethat the percentage of respondents who do not know about USSD-based digital payment methods is the highest (32.56%) by collage, and the lowest is (0%) among the respondents whose literacy. The percentage of respondents who have not used the USSD-based digital payment method is the highest (100%) by literacy, and the lowest is (42.11%) among the respondents who are above college. The percentage of respondents who used USSD based digital payment method is the highest (47.37%) among those above college, and the lowest is (0%) among the literacy respondents. It is perceived that there is an association between the educational qualification and using USSD-based digital payment method. Since the calculated value (36.531) is greater than the Table value (18.307), The null hypothesis is rejected, alternative hypothesis isaccepted, therefore, the P-value is (0.003), which is significant at 5%.

It is observed from Table that the percentage of respondents who do not know about using a digital payment wallet is the highest (32.56%) by college, and the lowest is (0%) among the respondents whose literacy. The percentage of respondents who have not used a digital payment wallet is the highest (100%) by literacy, and the lowest is (42.11%) among those who are above college.

Table 9: Using Wallet-Based Digital Payment Method VS Educational Qualification

Sr. No.	Educational Qualification	Using Wallet Based Digital Payment Method			Total
Sr. No.	Educational Qualification	Don’t Know	Not Used	Used	Total
1.	Literacy	0	1	0	1
1.	Literacy	(0)	(100)	(0)	(100)
2.	Before Secondary	2	27	1	30
2.	Before Secondary	(6.67)	(90)	(3.33)	(100)
3.	Secondary	2	19	4	25
3.	Secondary	(8)	(76)	(16)	(100)
4.	College	56	91	25	172
4.	College	(32.56)	(52.91)	(14.53)	(100)
5.	Above College	2	8	9	19
5.	Above College	(10.53)	(42.11)	(47.37)	(100)
6.	Ph.D.	3	7	3	13
6.	Ph.D.	(23.08)	(53.85)	(23.08)	(100)
Total		65	153	42	260
Calculated X² Value		Table Value	D.F.	Remarks
36.531		18.307	10	Significant at 5%

Note: Figures in Parenthesis show Percentages. Source: Primary Data.

The percentage of respondents who used a digital payment wallet is the highest (47.37%) by above college, and the lowest is (0%) among those who are literacy. It is perceived that there is an association between educational qualifications and the use of a digital payment wallet. The calculated value (36.531) is much greater than the Table value (18.307), the null hypothesis is rejected, and the alternative hypothesis is accepted, therefore; the P-value is (0.000), which is significant at 5%.

HYPOTHESIS TESTING:

H1: There is a significant association between community group (rural workers, urban workers, university boys and girls, self-employed) and knowledge of insurance and pensions.

Results: Since the calculated value (16.070) is greater than the table value, the result is significant at the 5% level. This suggests a significant association between community group and knowledge of insurance and pensions, leading to the rejection of the null hypothesis.

H2: There is a significant association between community group and the frequency of cheque book usage.

Results: The calculated value is slightly less than the table value, making the result significant at 10%. This implies a weaker association between community group and cheque book usage.

H3: There is a significant association between community group and frequency of ATM service usage.

Results: The calculated value is very close to, but still less than, the table value, showing a marginal significance at the 10% level.

H4: There is a significant association between community group and the difficulty level in using banking applications.

Results: Since the calculated value (37.545) is much greater than the table value, the result is highly significant at the 5% level. This indicates a strong association between community group and difficulty in using banking applications, leading to the rejection of the null hypothesis.

H5: There is a significant association between age group and usage of wallet-based digital payment methods.

Results: The calculated value (13.955) is greater than the table value, which indicates significance at the 5% level. This suggests a significant association between age and usage of wallet-based digital payment methods, leading to the rejection of the null hypothesis.

H6: There is a significant association between educational qualification and the usage of USSD-based digital payment methods.

Results: The calculated value (36.531) is much greater than the table value, making the result highly significant at the 5% level. This indicates a strong association between educational qualification and the use of USSD-based digital payment methods, leading to the rejection of the null hypothesis.

CONCLUSION:

This study emphasises how important sociodemographic characteristics are in determining how different community groups use digital payment methods and financial services. According to the research, university students are more likely to use digital banking tools like mobile applications and wallets than are rural laborers and independent contractors. The familiarity and usage of digital payment systems are also significantly influenced by age and educational attainment. Wallet-based and USSD-based payments are more likely to be adopted by younger respondents and those with higher educational attainment. The study's findings highlight the need for specialised financial education and digital literacy programs to close the financial inclusion gap, especially for undereducated and rural populations. To guarantee accessibility for all sociodemographic groups, financial institutions should concentrate on streamlining digital platforms and increasing outreach initiatives. This kind of promotion of digital financial services may encourage greater financial inclusion, which would result in more stable and prosperous economies.

LIMITATIONS OF THE STUDY AND SCOPE FOR FURTHER RESEARCH:

This study has several limitations that should be considered. Firstly, the research was geographically limited to urban and rural areas in Yemen, which may not fully capture the regional disparities, especially in conflict-affected areas. The sample size of 260 respondents, though diverse, might not represent the broader population, particularly marginalized communities. The reliance on quantitative data also limits the understanding of the deeper, qualitative factors influencing financial service adoption.

Future research could address these limitations by employing longitudinal studies to track changes in financial inclusion over time, conducting qualitative interviews to explore cultural and psychological barriers, investigating the impact of financial literacy programs, and focusing on the role of mobile banking in rural areas. Additionally, more targeted studies on the challenges faced by women and marginalized groups, as well as comparative research with other conflict-affected regions, could provide deeper insights and inform policies to enhance financial inclusion in Yemen.

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Received on 04.03.2025 Revised on 21.03.2025

Accepted on 03.04.2025 Published on 02.06.2025

Available online from June 05, 2025

Res. J. of Humanities and Social Sciences. 2025;16(2):66-74.

DOI: 10.52711/2321-5828.2025.00011

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Creative Commons License.

Sr. No.		Knowledge of Insurance and Pensions	Community Group				Total
Sr. No.		Knowledge of Insurance and Pensions	Rural Workers	Urban Workers	University Boys and Girls	Self-Employed	Total
1.		Yes. I am Registered	5	0	0	4	9
1.		Yes. I am Registered	(55.56)	(0)	(0)	(44.44)
2.		Yes. Not Registered	7	10	5	3	25
2.		Yes. Not Registered	(28)	(40)	(20)	(12)
3.		No	5	13	11	5	34
3.		No	(14.71)	(38.24)	(32.35)	(14.71)
Total			17	23	16	12	68
	Calculated X²Value		Table Value	D.F.	Remarks
	16.070		12.592	6	Significant at 5%

Sr. No.	Community Group		Using of Services (ATMs)			Total
Sr. No.	Community Group		Not Used	Sometimes	Frequently	Total
1.	Rural Workers		35	2	5	42
1.	Rural Workers		(83.33)	(4.76)	(11.9)	(100)
2.	Urban Workers		15	9	1	25
2.	Urban Workers		(60)	(36)	(4)	(100)
3.	University Boys and Girls		31	9	4	44
3.	University Boys and Girls		(70.45)	(20.45)	(9.09)	(100)
4.	Self-Employed		10	2	0	12
4.	Self-Employed		(83.33)	(16.67)	(0)	(100)
Total			91	22	10	123
Calculated X² Value		Table Value		D.F.	Remarks
12.462		12.592		6	Significant at 10%