Title: Does Fintech Innovations Improve Financial Inclusion: Evidence from Sub Sahara Africa
Authors: Andrew E.O Erhijakpor, PhD
Volume: 9
Issue: 2
Pages: 1-9
Publication Date: 2025/02/28
Abstract:
This paper evaluates the role of fintech innovations in improving financial inclusion in Sub-Saharan Africa. Analytical research design was used to explain the effect of fintech innovation on financial inclusion in Sub-Saharan Africa. The population for this study consists of individuals and businesses in Sub-Saharan Africa who have access to or use fintech services. Data on the fintech adoption and financial inclusion metrics were sought from World Bank and Statista from 2014 to 2023. Quantitative Data Analysis and Inferential Statistics was used to analyze the effect of fintech innovation (mobile phones, telephone lines, internet & automated teller machines) on financial inclusion (account ownership with mobile money service providers). Based on the results from test, it was found that apart from automated teller machine that showed trivial effect, the others mobile phone, telephone lines and internet had useful effect on financial inclusion in Sub-Saharan Africa. The study recommends amongst others that policymakers should prioritize expanding access to mobile phones in Sub-Saharan Africa by subsidizing mobile phones, promoting local manufacturing, and partnering with telecommunications companies to reduce costs, ensure affordability and enable broader access to financial services. Also, efforts should focus on modernizing and expanding telephone networks in areas with poor connectivity. Similarly, Governments and private sector players should invest in internet infrastructure, especially in rural and underserved areas to improve connectivity by deploying affordable broadband, increasing network coverage, and promoting public-private partnerships to drive technological growth.