Policy Imperatives For Enhancing Financial Inclusion In Sub-Saharan Africa Through Ict-Driven Financial Technologies

Abstract

Financial inclusion plays a crucial role in fostering inclusive development, particularly in less affluent nations. This research examines the connection between financial ICT-technologies and financial inclusion in Sub-Saharan Africa (SSA) using panel data spanning from 1999 to 2023. Previous research has explored the impact of financial technology on financial inclusion across various countries, employing diverse methodologies. The outcomes of these studies have yielded mixed results, depending on the country and analytical models utilized. To address these inconsistencies, this study aims to determine whether financial technology contributes to the growth of financial inclusion specifically within SSA countries. Empirical research indicates that financial inclusion in Sub-Saharan Africa (SSA) is strongly linked to various financial technologies. This study examines several aspects of ICT-driven financial technologies, including the percentage of individuals using the internet, fixed telephone and mobile cellular subscriptions per 100 people, and fixed broadband subscriptions. The research aims to determine which of these technologies significantly influence financial inclusion in the studied nations. The results reveal that, as anticipated, most financial technology aspects positively impact financial inclusion, though the effects differ across various dimensions. Significant correlations exist between financial inclusion growth and factors such as fixed broadband and telephone subscriptions per 100 people, internet usage percentage, and mobile cellular subscriptions per 100 people. Interestingly, fixed broadband subscriptions appear to hinder financial inclusion growth in SSA countries.