FinTech—A pathway to financial inclusion? Evidence from Southern African Development Community member states.

The study investigates the effect of FinTech on financial inclusion in Southern African Development Community (SADC) member states over the period 2011–2021, while also looking at the transmission channels. The study adopts a battery of econometric techniques such as ordinary least squares (OLS), th...

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Publicado en:African Development Review / Revue Africaine de Développement Vol. 36; no. 2; pp. 252 - 266
Autores principales: Olaoye, Olumide O., Zerihun, Mulatu F., Shaddady, Ali, Tabash, Mosab I.
Formato: Artículo
Publicado: Wiley-Blackwell Jun2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/1467-8268.12754
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        atl: FinTech—A pathway to financial inclusion? Evidence from Southern African Development Community member states.
      aug:
        au:
          Olaoye, Olumide O.
          Zerihun, Mulatu F.
          Shaddady, Ali
          Tabash, Mosab I.
        affil:
          Department of Economics, Tshwane University of Technology, Pretoria, South Africa
          Department of Finance, King Abdulaziz University, Jeddah, Saudi Arabia
          Al Ain University, Al Ain, United Arab Emirates
      su:
        Southern African Development Community
        Africans
        Internet access
        Financial inclusion
        Automated teller machines
        Financial technology
        Branch banks
      sug:
        subj:
          Africans
          Internet access
          Southern African Development Community
          Other financial transactions processing and clearing house activities
          All other building equipment contractors
          Computer and peripheral equipment manufacturing
          Computer Terminal and Other Computer Peripheral Equipment Manufacturing
          Office and store machinery and equipment merchant wholesalers
          Office Equipment Merchant Wholesalers
          Other Building Equipment Contractors
          Corporate and institutional banking industry
          Commercial Banking
          Personal and commercial banking industry
          Financial inclusion
          Automated teller machines
          Financial technology
          Branch banks
      keyword:
        digital economy
        Driscoll–Kraay
        financial inclusion
        FinTech
        GMM
        Southern African Community (SADC)
        transmission channels
        digital economy
        Driscoll–Kraay
        financial inclusion
        FinTech
        GMM
        Southern African Community (SADC)
        transmission channels
      ab: The study investigates the effect of FinTech on financial inclusion in Southern African Development Community (SADC) member states over the period 2011–2021, while also looking at the transmission channels. The study adopts a battery of econometric techniques such as ordinary least squares (OLS), the two‐step system generalized method of moments (GMM) and the Driscoll and Kraay covariance estimator. The study finds that FinTech (proxied by digitization) deepens financial inclusion (access to loan) and a decline in the number of bank branches in SADC member states. This is logical since the operations of FinTech are digital. This implies that an attempt to promote financial inclusion by traditional means such as building physical bank structures may be limited, especially in Africa where large swathes of the populace remain unbanked. As expected, FinTech (measured by automated teller machines [ATMs]) increases the number of bank branches in SADC. We also find that mobile cellular subscription, the share of population with access to electricity and Internet access and mean years of schooling are important transmission channels of FinTech to financial inclusion in SADC. In general, the result shows that FinTech enhances and deepens financial inclusion in SADC member states. The research and policy implications are discussed.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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