AUTHOR=M. V. Manoj Kumar , Almuraqab Nasser , Moonesar Immanuel Azaad , Braendle Udo Christian , Rao Ananth 

TITLE=How does digitally enabled micro-finance promote income equality for the vulnerable in the expanded BRICS block during the pandemic?

JOURNAL=Frontiers in Big Data

VOLUME=Volume 7 - 2024

YEAR=2024

URL=https://www.frontiersin.org/journals/big-data/articles/10.3389/fdata.2024.1417752

DOI=10.3389/fdata.2024.1417752

ISSN=2624-909X

ABSTRACT=IntroductionTech-enabled alternative micro-finance promotes income equality in growing BRICS and Austria across financial crises and pandemics. Are financial access and digital skills equally economically valuable? Our study uses inputs: Human Capital, Alternative Micro-finance, Digitization, Governance, and Entrepreneurship, GDP, inflation, population growth, pandemics, and economic crises using the global 2000–2022 to explain income equality using SWIID Gini disposable and market income index as outputs.MethodsThe study uses Principal component analysis for reducing data dimensionality and collinearity. The study uses OLS, Dynamic Mixed Model, and random forest tree, a machine learning technique, as models to model digitally enable micro-finance.ResultsRFT model diagnostics consistently were better than OLS and GMM. Reduced income inequalities resulted from public and private infrastructure investments, government policy interventions to fight pandemics, economic crises, and conflicts, as well as from expansion in GDP.DiscussionThe study concludes that digitally enabled micro-finance plays a crucial role in reducing income inequalities, particularly during times of crisis. Key policy implications include the need for government support in digital infrastructure to enhance financial inclusion. By pooling their resources, the BRICS block can empower micro-finance organizations to ameliorate disruptions from COVID-19 and economic crises.