Nexus Between Financial Technology and Financial Inclusion in Sub-Saharan Africa

A Dynamic Panel Technique

Bibliographic Data

ID22006089
AuthorsIbukun Kolawole Oyedotun (0000-0002-1050-550X, University of South Africa), Patricia Lindelwa Makoni (0000-0002-9038-1411, University of South Africa, corresponding author)
Year2026
Volume16
Issue1
Publication date2026-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440251407742
OpenAlexW7126432397
LanguageEN
References cited68

Before and after the COVID-19 pandemic, interest in financial inclusion identified financial technology as a significant enabler of financial inclusion in emerging economies. Using the system GMM estimation technique, this study’s main objective was to empirically examine the nexus between financial technology (fintech) and financial inclusion across 30 selected Sub-Saharan African (SSA) economies between 2004 and 2021. Firstly, we used six variables to compute a financial inclusion index and four variables to compute a financial technology index using Principal Component Analysis. The system GMM dynamic panel data estimation was employed to examine the relationship between financial technology and financial inclusion. The analysis showed that financial technology is a decisive determinant factor for financial inclusion in selected SSA countries, as illustrated by the significantly positive relationships. Furthermore, we found that accessibility and usage of the three dimensions impact financial inclusion and maintain a positive relationship with financial technology. These findings imply that financial inclusion will improve as the SSA countries intensify their efforts to enhance financial technology. To promote financial inclusion, it is recommended that Sub-Saharan African countries formulate policies that support a conducive regulatory and investment environment to reduce financial technology data costs, while improving access and usage of financial services. The scholarly significance of this study is that it is one of the first papers to use the 2021 Global Findex Report, which was recently released in 2022, to empirically investigate the impact of fintech on financial inclusion in sub-Saharan African countries, applying system GMM dynamic panel data techniques

Enabling · Financial analysis · Financial inclusion · Financial ratio · Financial services · Fintech · Panel data · Economic Growth and Development · FinTech, Crowdfunding, Digital Finance · Microfinance and Financial Inclusion

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