Financial inclusion is a vital driver of inclusive economic growth and poverty alleviation, especially in rural and underserved communities. In the Philippines, rural banks play a crucial role in providing financial services to these areas. However, many face challenges in digitalizing operations and expanding outreach, limiting their impact on achieving the Sustainable Development Goals (SDGs). This study examines how rural banks’ financial inclusion efforts contribute to SDG achievement and explores digitalization efforts as a mediating factor in this relationship. Employing a descriptive research design, primary data were collected through a validated questionnaire from 60 rural bank respondents in CALABARZON. Quantitative analysis measured constructs of financial inclusion, digitalization efforts, and SDG achievement. Mediation analysis via Partial Least Squares Structural Equation Modeling (PLS-SEM) tested the mediating role of digitalization on the influence of financial inclusion on the achievement of SDGs. Results revealed that digitalization efforts significantly enhance rural banks’ contribution to financial inclusion and SDG achievement by improving service delivery and access to deposit and loan products. However, infrastructural and capacity constraints remain barriers to digital adoption. The study highlights the critical role of rural banks’ digital innovation in advancing inclusive growth, poverty reduction, and sustainable economic development in the Philippines. The findings emphasize the need for supportive policies and regulations to boost rural banks’ digital capabilities. Promoting digital transformation in rural banks can accelerate financial inclusion, supporting the country’s developmental ambitions as outlined in the Philippine Development Plan and SDG framework. Key recommendations include capacity building, infrastructure investment, and effective governance to foster sustainable rural financial services innovation.

Keywords: digitalization efforts, financial inclusion, Sustainable Development Goals (SDGs), rural banks, CALABARZON, Philippines