The impact of technological innovations on financial deepening: Implications for SME financing in Africa.

This paper examines whether technological innovations such as information and communication technology infrastructure, mobile phone subscriptions, secure internet servers and the number of automated teller machines and bank branches increased financial deepening in 43 African countries for the perio...

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Publicado en:African Development Review / Revue Africaine de Développement Vol. 34; no. 4; pp. 429 - 443
Autores principales: Sanga, Bahati, Aziakpono, Meshach
Formato: Artículo
Publicado: Wiley-Blackwell Dec2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Dec2022
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        10.1111/1467-8268.12668
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        atl: The impact of technological innovations on financial deepening: Implications for SME financing in Africa.
      aug:
        au:
          Sanga, Bahati
          Aziakpono, Meshach
        affil: Stellenbosch Business School, Faculty of Economic and Management Sciences, University of Stellenbosch, Cape Town, South Africa
      su:
        Africa
        Technological innovations
        Bank deposits
        Communication infrastructure
        Automated teller machines
        Branch banks
        Internet servers
      sug:
        subj:
          Technological innovations
          Africa
          Office Equipment Merchant Wholesalers
          Computer and peripheral equipment manufacturing
          Computer Terminal and Other Computer Peripheral Equipment Manufacturing
          Office and store machinery and equipment merchant wholesalers
          Other Building Equipment Contractors
          All other building equipment contractors
          Other financial transactions processing and clearing house activities
          Commercial Banking
          Personal and commercial banking industry
          Corporate and institutional banking industry
          Data Processing, Hosting, and Related Services
          Bank deposits
          Communication infrastructure
          Automated teller machines
          Branch banks
          Internet servers
      ab: This paper examines whether technological innovations such as information and communication technology infrastructure, mobile phone subscriptions, secure internet servers and the number of automated teller machines and bank branches increased financial deepening in 43 African countries for the period 2010–2019. The study employs panel corrected standard errors, fixed effects and quantile regressions for empirical analysis. The results show that technological innovations have a positive and significant influence on financial deepening in Africa in terms of banks' mobilisation of deposits and allocation of credit to enterprises. Furthermore, the technological indicators have a strong and positive effect on higher levels of bank credit to the private sector than lower levels. As for bank deposits, only the number of branches was found to have significant and positive effects at a high level of bank deposits compared with a low level. These results imply that African governments and development partners can leverage ICT developments to increase financial deepening and reinvigorate debt financing, which is the primary funding source for small and medium‐size enterprises.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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