Impacts of Fintech on Financial Inclusion: the Case of Sub-Saharan Africa

• Autorzy: Wulli Faustin Djoufouet , Thierry Messie Pondie
• Języki publikacji: EN

Abstrakty

EN

The objective of this paper is to determine the impact of FinTech on the financial inclusion of populations in sub-Saharan Africa where financial education is still low. To do so, data were collected on a sample of 35 countries over a period from 2011 to 2020. Estimates were made using two-stage least squares models and the Lewbel 2LS model. It is clear from the results that fintech contributes significantly to the financial inclusion of people in sub-Saharan Africa. Mobile phone ownership facilitates the use of financial services. It is noted that a 1% increase in the number of people using a phone would contribute to a 0.67% increase in the financial inclusion rate. The Driscoll-Kraay technique consolidated these results by showing that with 1% of people having access to fintech tools, there is an improvement in the financial inclusion rate of about 0.70%.(original abstract)

Słowa kluczowe

EN

Financial integration; Technological progress

PL

Integracja finansowa; Postęp technologiczny

• Czasopismo: Copernican Journal of Finance & Accounting
• Rocznik: 2022
• Tom: 11
• Numer: nr 4
• Strony: 69--88

Twórcy

autor

Wulli Faustin Djoufouet

• University of Bamenda

autor

Thierry Messie Pondie

• University of Dschang

Bibliografia

• Abor, J.Y., Amidu, M., & Issahaku H. (2018). Mobile Telephony, Financial Inclusion and Inclusive Growth. Journal of African Business, 127(2), 430-453. http://dx.doi.org/10.1080/15228916.2017.1419332.
• Allen, F., Demirguc-Kunt, A., Klapper, L., & Martinez Peria, M.S. (2016). The Foundations of Financial Inclusion: Understanding Ownership and Use of Formal Accounts. Journal of Financial Intermediation, 27(2), 1-30. http://dx.doi.org/10.1016/j.jfi.2015.12.003.
• Al-Nawayseh, M.K (2020). FinTech in COVID-19 and Beyond: What Factors Are Affecting Customers' Choice of FinTech Applications? Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1-15. http://dx.doi.org/10.3390/joitmc6040153.
• Andrianaivo, M., & Kpodar, K. (2012). Mobile Phones, Financial Inclusion and Growth. Review of Economics and Institutions, 3(2), 15-30. http://dx.doi.org/10.5202/rei.v3i2.75.
• Angelucci, M., Karlan, D., & Zinman, J. (2015). Microcredit impacts: Evidence from a randomized microcredit program placement experiment by compartamos Banco. American Economic Journal. Applied Economics, 7(1), 151-182. http://dx.doi.org/10.1257/app.20130537.
• Asongu S.A., & Odhiambo, N.M. (2018). Challenges of Doing Business in Africa: A Systematic Review. Journal of African Business. 27(2), 1-30.
• Asongu S.A., Nwachukwu, J.C., & Orim, S-M.I. (2018). Mobile phones, institutional quality and entrepreneurship in Sub-Saharan Africa. Technological Forecasting and Social Change, 131(3), 183-203. http://dx.doi.org/10.1016/j.techfore.2017.08.007.
• Augsburg, B., De Haas, R., Harmgart, H., & Meghir, C. (2015). The Impacts of microcredit: Evidence from Bosnia and Herzegovina. American Economic Journal. Applied Economics, 7(1), 183-203. http://dx.doi.org/10.1257/app.20130272.
• Ayyagari, M., & Beck, T. (2015). Financial inclusion in Asia: An overview. ADB Economics Working Paper Series, 449, 1-21.
• Banerjee, A.V., & Newman, A.F. (1993). Occupational choice and the process of development. Journal of Political Econmy, 101(2), 274-298. http://dx.doi.org/10.1086/261876.
• Banna, H., Hassan, M. K., & Rashid, M. (2021). Fintech-based financial inclusion and bank risk-taking: Evidence from OIC countries. Journal of International Financial Markets, Institutions and Money, 75, 101447.
• Barnabe, A.Y. (2021). Migrant remittances and financial inclusion in Africa: a dynamic and long-run approach. In E. Osabuohien, E.A. Oduntan, O. Gershon, O.T. Onanuga,O. Ola-David (Eds.), Handbook of Research on Institution Development for Sustainable and Inclusive Economic Growth in Africa. Hershey: IGI Global.
• Baum, A.W., Cristina C., & Rother, P. (2012). Debt and Growth: New Evidence for theEuro Area. 14th Public Finance Workshop, Banca DÍtalia, 29-31.
• Beck, T., A. Demirgüç-Kunt, & R. Levine. (2007). Finance, Inequality and the Poor. Journal of Economic Growth, 12(1), 27-49. http://dx.doi.org/10.1007/s10887-007-9010-6.
• Bhandari, B.S. (2018). Life Insurance-Social Security et Financial Inclusion. Bimaquest,18(2), 18-32.
• Chuc, A., Li, W., Phi, N., Le, Q., Yoshino, N., & Taghizadeh-Hesary, F. (2021). The necessity of financial inclusion for enhancing the economic impacts of remittances. Borsa Istanbul Review, 72(2), 34-49. http://dx.doi.org/10.1080/15228916.2017.1396791.
• Demir, E., Bilgin, M.H., Karabulut, G., & Doker, A.C. (2020). The relationship between cryptocurrencies and COVID-19 pandemic. Eurasian Econ Review, 10, 349-360. https://doi.org/10.1007/s40822-020-00154-1.
• Demir, E., Gozgor, G., Lau, Chi K., & Vigne, S.A. (2019). Does Economic Policy Uncertainty Predict the Bitcoin Returns? An Empirical Investigation. Finance Research Letters, 26, 145-149. https://doi.org/10.1016/j.frl.2018.01.005.
• Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017: Measuring financial inclusion and the fintech revolution, World Bank Group. https://openknowledge.worldbank.org/handle/10986/29510.
• Dev, S.M. (2006). Financial inclusion: Issues and challenges. Economic and Political Weekly, 27(17), 4310-4313.
• Djoufouet, W.F. (2019). La microfinance en zones rurales: quel bilan en Afrique Centrale? Journal of Academic Finance, 10(2), 39-48. http://dx.doi.org/10.5281/zenodo.4836454.
• Driscoll, J., & Kraay A.C. (1998). Consistent covariance matrix estimation with spatially dependent data. Review of Economics and Statistics, 80(2), 549-560. http://dx.doi.org/10.1162/003465398557825.
• Emara, N., & El Said, A. (2021). Financial inclusion and economic growth: The role of governance in selected MENA countries. International Review of Economics et Finance,75(2), 34-54.
• Fu, J., & Mishra, M. (2020). The Global Impact of COVID-19 on Fintech Adoption. Swiss Finance Institute Research Paper Series, 20-38. http://dx.doi.org/10.2139/ssrn.3588453.
• Gabor, D., & Brooks, S. (2017) The digital revolution in financial inclusion: international development in the fintech era. New Political Economy, 22(4), 423-436, http://dx.doi.org/10.1080/13563467.2017.1259298.
• Gautam, D.P. (2019). Do Remittances Promote Financial Inclusion? Economic and Political Institutions and Development, 71(3), 91-108.
• Geng, Z., & He, G. (2021). Digital financial inclusion and sustainable employment: Evidence from countries along the belt and road. Borsa Istanbul Review, 21(3), 307-316. http://dx.doi.org/10.1016/j.bir.2021.04.004.
• Ghosh, S. (2016). Does Mobile Telephony Spur Growth? Evidence from Indian States. Telecommunications Policy 40 (10-11), 1020-1031. http://dx.doi.org/10.1016/j.telpol.2016.05.009.
• Ghosh, S. (2018). Does mobile telephony spur growth? Evidence from Indian states. TelecommunicationsPolicy, 40(10-11), 1020-1031. http://dx.doi.org/10.5281/zenodo.
• Ghosh, S., & Vinod, D. (2017). What constrains financial inclusion for women? Evidence from Indian micro data. World Development, 92(2), 60-81. http://dx.doi.org/10.1080/15228916.2017.1396791.
• Gomber, P., Koch, J.A., & Siering, M. (2017). Digital Finance and FinTech: current research and future research directions, Journal of Business Economics, 67(5), 537- 580. http://dx.doi.org/10.1007/s11573-017-0852-x.
• Gosavi, A. (2018). Can mobile money help firms mitigate the problem of access to finance in eastern sub-saharan Africa? Journal of African Business, 19(3), 343-360. http://dx.doi.org/10.1080/15228916.2017.1396791.
• Hoechle, D. (2007). Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence. The Stata Journal, 7(3), 281-312. http://dx.doi.org/10.1177/1536867X0700700301.
• Junior, A.M., Andoh, E., Gatsi, J.G., & Kawor, S. (2021). Financial development and economic growth nexus in SSA economies: The moderating role of telecommunication development. Cogent Economics et Finance, 9(1), 21-37. http://dx.doi.org/10.1080/23322039.2020.1862395.
• Khatun, N., & Tamanna, M. (2020). Factors affecting the adoption of fintech: a study based on the financial institutions in Bangladesh. Copernican Journal of Finance & Accounting. 9(4), 51-75. http://dx.doi.org/10.12775/CJFA.2020.021.
• Kim, D.W., Yu, J.S., & Hassan, M.K. (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 4(3), 1-14. http://dx.doi.org/10.1016/j.ribaf.2017.07.178.
• Kochar, A. (2011). The distributive consequences of social banking: A micro-empirical analysis of the Indian Experience. Economic Development and Cultural Change, 59(2),251-280. http://dx.doi.org/10.1086/657122.
• Krasnyuk, M., Tkalenko, A., & Krasniuk, S. (2021). Development of the FinTech Industry and technologies under Covid-19. International scientific journal Grail of Science, 27(2), 22-37.
• Lewbel, A. (2012). Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models. Journal of Business et Economic Statistics, 30(1),67- 80. http://dx.doi.org/10.1080/07350015.2012.643126.
• Manyika, J., Lund, S., Singer, M., White, O., & Berry, C. (2016). Digital Finance for All: Powering Inclusive Growth in Emerging Economies. New York: McKinsey Global Institute.
• Mbiti, I., & Weil, D.N. (2011). Mobile Banking: The Impact of MPesa in Kenya. NBER Working Paper Series, 17129. http://dx.doi.org/10.3386/w17129.
• Mehrotra, A.N., & Yetman, J. (2015). Financial inclusion-issues for central banks. BIS Quarterly Review March, 7(2), 21-32.
• Morawczynski, O. (2009). Exploring the Usage and Impact of Transformational. Mobile Financial Services: The Case of M-PESA in Kenya. Journal of Eastern African Studies, 3(3), 509-525. http://dx.doi.org/10.1080/17531050903273768.
• Najaf, K., Subramaniamb, R.K., & Atayah, O.F. (2021). Understanding the implications of FinTech Peer-to-Peer (P2P) lending during the COVID-19 pandemic. Journal of Sustainable Finance and Investment, 37(6), 21-40. http://dx.doi.org/10.1080/07350015.2012.643126.
• OECD, & JRC. (2008). Handbook on constructing composite indicators: Methodology and user guide. Paris: OECD.
• Ouma, S.A., Odongo, T.M., & Were, M. (2017). Mobile Financial Services and Financial Inclusion: Is It A Boon For Savings Mobilization? Review of Development Finance 7(1), 29-35. http://dx.doi.org/10.1016/j.rdf.2017.01.001.
• Ozili, P. (2020a). Financial inclusion and Fintech during COVID-19 crisis: Policy solutions. MPRA Paper, 11219, 1-9.
• Ozili, P. (2020b). Theory of financial Inclusion. MPRA Paper, 109579, 1-23.
• Ozili, P.K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbu lReview, 18(4), 329-340. http://doi.org/10.1016/j.bir.2017.12.003.
• Ozili, P.K. (2021). Financial inclusion research around the world: A review. In Forum for social economics, 50(4), 457-479. http://dx.doi.org/10.1080/07360932.2020.1715238.
• Puatwoe, J.T., & Piabuo, S.M. (2017). Financial sector development and economic growth: Evidence from Cameroon. Financial Innovation, 3(1), 1-18. http://dx.doi.org/10.1186/s40854-017-0073-x.
• Sahay, R., Eriksson, U., Allmen, V., Lahreche, A., Khera, P., Ogawa, S., Bazarbash, M., &Kim, B. (2020). The promise of Fintech: Financial Inclusion in the Post COVID-19. International Monetary Fund, 27(2), 22-35.
• Sarma, M. (2012). Index of Financial Inclusion-A measure of financial sector inclusiveness. Centre for International Trade and Development, School of International Studies. Working Paper Jawaharlal Nehru University, 07/2012, 1-34.
• Senyo, PK & Osabutey L.C. (2020). Unearthing antecedents to financial inclusion through FinTech innovations. Technovation, 98(10), 1-14. https://doi.org/10.1016/j.technovation.2020.102155.
• Song, C.Q., Chang, C.P., & Gong, Q. (2021). Economic growth, corruption, and financial development: Global evidence. Economic Modelling, 94(3), 822-830. http://dx.doi.org/10.1016/j.econmod.2020.02.022.
• Stock, J.H., Wright, J.H., & Yogo, M (2002). A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments. American Statistical Association Journal of Business et Economic Statistics, 20(4), 125-139. http://dx.doi.org/10.1198/073500102288618658.
• Swamy, V. (2014). Financial inclusion, gender dimension, and economic impact on poor households. World development, 56(2), 1-15.
• Tchamyou, V.S., Erreyger, G., & Cassimon, D. (2019). Inequality, ICT and Financial Access in Africa. Technological Forecasting and Social Change, 13(9), 169-184. http://dx.doi.org/10.1016/j.techfore.2018.11.004.
• The Global Findex Database (2017). Measuring Financial Inclusion and the Fintech Revolution. World Bank, 27(2). http://dx.doi.org/10.1596/978-1-4648-1259-0.
• Tram, T.X.H., Lai, T.D., & Nguyen, T.T.H. (2021). Constructing a composite financial inclusion index for developing economies. The Quarterly Review of Economics and Finance, 27(2). http://dx.doi.org/10.1016/j.qref.2021.01.003.
• Usman, M., Makhdum, M.S.A., & Kousar, R. (2021). Does financial inclusion, renewable and non-renewable energy utilization accelerate ecological footprints and economic growth? Fresh evidence from 15 highest emitting countries. Sustainable Cities and Society, 65(1), 102590. http://dx.doi.org/10.1016/j.scs.2020.102590.
• Were, M., Odongo, M., & Israel, C. (2021). Gender disparities in financial inclusion in Tanzania. WIDER Working Paper, 2021/97.
• Xu, X. (2020). Trust and financial inclusion: A cross-country study. Finance Research Letters, 35, 7(1), 101-114.
• Yorulmaz, R. (2018). An analysis of constructing global financial inclusion indices. Borsa Istanbul Review, 18(3), 248-258. http://dx.doi.org/10.1016/j.bir.2018.05.001.
• Zhang, Q., & Posso, A. (2019). Thinking inside the box: A closer look at financial inclusion and household income. The Journal of Development Studies, 55(7), 1616-1631. http://dx.doi.org/10.1080/00220388.2017.1380798.
• (www1) Objectifs et domaines prioritaires de l'agenda 2063, https://au.int/fr/agenda2063/objectifs.

Identyfikatory

DOI

10.12775/CJFA.2022.019