Fintech, financial inclusion and income inequality nexus in Africa

Chinoda, Tough; Mashamba, Tafirei

doi:10.1080/23322039.2021.1986926

Cited by 52 publications

(20 citation statements)

References 43 publications

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“…Based on the empirical findings and the outcomes of some relevant key studies [ (28,34,35,51,82,100,103,104,109,(187)(188)(189)], several policy implications have been provided that could benefit the governments, policymakers, and related stakeholders in the African region for promoting sustainable development. The details are as follows:…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%

Fintech, financial inclusion, and sustainable development in the African region

Tidjani,

Madouri

2024

Front. Appl. Math. Stat.

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In this study, we explore the nexus between sustainable development and finance, with a specific focus on the African region–a critical yet underexplored context in the existing literature. Against the backdrop of evolving challenges in financial inclusion, improved access, and the growing prevalence of financial technology (FinTech), we aim to fill a research gap by investigating the connection between FinTech, financial inclusion, and sustainable development. The empirical exploration spans 25 African countries from 2011 to 2019, employing econometric methods such as dynamic panel (SGMM two-steps) and static panel (OLS, FE, LSDV). Utilizing key indicators like Adjusted Net Savings (ANS) and Gross Saving rate (GS), our findings reveal a substantial positive impact of financial inclusion and FinTech on sustainable development. However, an intriguing discovery emerges as the interaction between these variables exhibits a weak negative and significant effect. As a unique contribution to the existing literature, we estimate marginal effects at various levels of FinTech and financial inclusion on sustainable development. Beyond insights, our study offers vital policy recommendations, emphasizing the necessity for improved collaboration among financial service providers to avoid redundancy. Furthermore, we highlight the critical need to expand financial infrastructure, advocate for FinTech promotion, and foster inter-African cooperation.

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Section: Conclusion and Recommendationsmentioning

confidence: 99%

Fintech, financial inclusion, and sustainable development in the African region

Tidjani,

Madouri

2024

Front. Appl. Math. Stat.

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“…Even among these few, the measurement of Fintech is debatable. For example, the use of mobile phone as proxy of Fintech (Asongu et al ., 2018; Asongu & Odhiambo, 2019; Chinoda & Mashamba, 2021; Demir et al ., 2022) is insufficient in the sense that an individual may own a mobile phone but might not be using it for financial services.…”

Section: Literaturementioning

confidence: 99%

Entrepreneurial Risk and Digital Financial Inclusion: A Cross‐Country Analysis

Konou

2023

J of App Econs and Policy

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The inception of financial technologies (Fintech) has enabled expanded use of financial services. Fintech contributes to financial inclusion and by doing so provides impacts on income inequality, poverty and economic growth. A prospective route of influence exerted by Fintech is to assist economic agents in taking entrepreneurial risks. The purpose of this study was to investigate the impact of digital financial inclusion, as enhanced by FinTech, on entrepreneurial risk. An index for measuring levels of digital financial inclusion was constructed based on variation patterns in several indicators of digital activities. A cross‐country model was proposed that relates entrepreneurial risk to digital financial inclusion as well as to a variety of other economic and social factors. Estimation results based on a panel of countries show that digital financial inclusion (0.265), institutional quality (0.169), per capita GDP (0.0456) and education (0.0475) have positive and significant effects on entrepreneurial risk. In contrast, time required to start a business (−0.136) and effective tax rates on capital (−0.494) provide negative and significant effects. In addition, a significant quadratic relationship between entrepreneurial risk and remittances (employee compensation and personal transfers) was found.

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“…They demonstrated that FinTech is key enabler of financial inclusion.” FinTech reduces income inequality indirectly through its effects on financial inclusion.” (p. 18). Using the same database provided by World Bank through Global Findex for 2011, 2014 and 2017, Chinoda and Mashamba (2021) applied the structural equation modeling to analyze the interaction between Fintech, financial inclusion, and income inequality for 25 African countries. The study proved that financial inclusion reduce the income inequality also in African countries.…”

Section: Literature Reviewmentioning

confidence: 99%

FinTechs and financial inclusion—Balkan experience: Digital perspectives on financial markets

Apostu

Panait

Vasile

et al. 2022

E J Info Sys Dev Countries

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The article aims to identify the stage of development of Fintech in the Balkan countries given the existence of numerous influencing factors Fintech is present in the Balkan countries, with a landscape colorfully generated by the different factors as the involvement of public authorities, the EU membership of only a few countries, the level of financial and digital education of the population. In order to highlight the variables influencing Fintech and financial inclusion in selected countries, specific indicators were used—internet usage and the share of bank assets in GDP, and several indicators regarding individuals performance, that is, online shopping, paid bills via internet, accessed a bank account online, paid utility bills using a mobile phone, made or received digital payments, account ownership and debit card ownership. The sample consists of all eight Balkan countries: Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Albania, Macedonia, Bulgaria, and Romania. For testing the hypothesis in the analysis are used: descriptives, ANOVA, cluster analysis and principal components analysis. The results demonstrated that Balkan countries are not homogenous regarding Fintech and financial inclusion, the differences being generated both by the public policies in the financial field but also by IT development and by the population openness for using the new financial services and products. For these reasons, the authors identified economic policy measures that can be applied to increase financial inclusion in these countries given the facilities offered by Fintech and the digitization of financial products.

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Fintech, financial inclusion and income inequality nexus in Africa

Cited by 52 publications

References 43 publications

Fintech, financial inclusion, and sustainable development in the African region

Fintech, financial inclusion, and sustainable development in the African region

Entrepreneurial Risk and Digital Financial Inclusion: A Cross‐Country Analysis

FinTechs and financial inclusion—Balkan experience: Digital perspectives on financial markets

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