Does FinTech deepen financial inclusion in sub-Saharan Africa? Unveiling the transmission channels

Olumide O. Olaoye (), Mosab I. Tabash (), Ali Shaddady () and Samraat Raya ()
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Olumide O. Olaoye: Thomas Adewumi University
Mosab I. Tabash: College of Business, Al Ain University
Ali Shaddady: King Abdulaziz University
Samraat Raya: Peter the Great Saint, Petersburg Polytechnic University

Quality & Quantity: International Journal of Methodology, 2025, vol. 59, issue 3, No 27, 2555-2576

Abstract: Abstract The study investigates the effect of FinTech on financial inclusion in sub-Saharan Africa (SSA). The study adopts a battery of econometric techniques such as the traditional ordinary least square (OLS) estimation technique, two-step system GMM, Driscoll-Kraay covariance matrix estimator, and panel vector autoregressive (PVAR) Granger causality model. The study finds that technology infrastructure (captured by mobile cellular subscription and the share of population with internet access) and the level of education (proxied by mean years of schooling) are important channels through which FinTech deepens financial inclusion. In other words, the study argues that FinTech may not directly engender financial inclusion in SSA if the necessary infrastructure is not in place. For instance, internet connectivity is not ubiquitous across the region, and this may hinder many of the citizens from utilizing mobile payment platforms for payments purposes which will worsen financial exclusion in SSA. Therefore, this implies the technology infrastructure in SSA needs to be enhanced. The result also shows that FinTech Granger causes financial inclusion in SSA. This implies FinTech can help to deepen financial inclusion in SSA. Further, we find that quality of government, education and population are significant determinants of financial inclusion in SSA. The research and policy implications are discussed.

Keywords: FinTech; Financial inclusion; Technology infrastructure; Technology preparedness; Education; SSA (search for similar items in EconPapers)
JEL-codes: B26 O3 O55 Q55 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11135-025-02082-1

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