Mobile FinTech and financial inclusion in sub-Saharan Africa: A comparative analysis

Abstract

This paper examines the impact of mobile FinTech on financial inclusion in sub-Saharan Africa. The analysis used data from the Global Findex database in 2014, 2017, and 2021 and from the World Development Indicators database. For mobile FinTech, the study employed two instruments as proxies and applied the principal components analysis approach to create an index for financial inclusion. The researchers employed random effect, fixed effect, PCSE, and GMM models. The results of the study revealed that mobile FinTech impacts financial inclusion positively and significantly. The result additionally notes that the payments aspect of mobile FinTech is more impactful than mobile money accounts. This research extends the body of knowledge by examining two components of mobile FinTech and their impact on financial inclusion. As a result, the development of mobile FinTech that collectively serves a larger market should be a priority for policymakers. Because mobile payments play a significant role, investing in mobile payment technologies would create broader ripple effects throughout the economy. Therefore, policymakers should leverage the payment dimension to foster transparency. Mobile FinTech systems must be integrated into broader economic sectors in SSA and beyond to ensure long-term financial inclusion.