The Fintech Ecosystem and Financial Inclusion: Evidence from Kenya

Odongo Kodongo

Working Papers from African Economic Research Consortium

Abstract: Motivated by calls to examine whether fintech fosters effective financial inclusion, we examined how consumer engagement with the fintech ecosystem affects access to traditional financial services. Using the FinAccess Kenya Household Survey 2021 data, we constructed a novel metric of individual engagement with the fintech ecosystem and investigated how it is associated with consumption of formal traditional financial products at the microlevel. Deploying a battery of econometric procedures, we have provided robust evidence that individual engagement with the fintech ecosystem is positively associated with use of formal traditional financial products. The positive impact of individual engagement with the fintech ecosystem on their use of traditional financial products is transmitted though reduction of the distance barrier and by fostering the consumption of financial products by traditionally disfavoured population segments. We have provided several policy guides anchored on these findings.

Date: 2024-07-17
New Economics Papers: this item is included in nep-env, nep-fle and nep-pay
Note: African Economic Research Consortium
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publication.aercafricalibrary.org/handle/123456789/3847 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aer:wpaper:b3a2fad3-1c4f-4e95-9cd3-611652fcad81

Access Statistics for this paper

More papers in Working Papers from African Economic Research Consortium Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Njiru ().