The Impact of Fintech and Digital Platforms on Financial Inclusion in the Informal Sector of Ghana
Abstract:
Financial technology (fintech) is widely
recognized as an effective tool to drive financial inclusion across the world.
However, its impact on financial inclusion in the informal sector is yet to be
understood especially in developing countries. This study assessed the impact
of fintech and digital platforms on financial inclusion in the informal sector
of Ghana. A descriptive cross-sectional research design was employed to select
365 participants in the informal sector from eight regions of Ghana through
multistage sampling method for data collection. Data was collected using a
5-point Likert scale that was adapted with items to assess the role of fintech
and adoption by people in the informal sector. After the data was analyzed with
SPSS software version 23.0, it was a found that majority of participants took a
neutral stance on the role and adoption of fintech; suggesting lack of
awareness on fintech in the informal sector. The study can conclude that Ghana
can benefit from the impact of fintech and digital platforms on financial
inclusion in the informal sector through education and creation of awareness as
there is lack of knowledge on fintech and its use in the sector.
References:
[1]. Leong,
K., & Sung, A., 2018, FinTech (Financial Technology): what is it and how to
use technologies to create business value in fintech way. International Journal
of Innovation, Management and Technology, 9(2), 74-78.
[2]. Popescu,
A. D., 2019, Empowering financial inclusion through fintech. Social Sciences
and Education Research Review, 6(2), 198-215.
[3]. Jarvis,
R., & Han, H., 2021, FinTech innovation: Review and future research
directions. International Journal of Banking, Finance and Insurance
Technologies, 1(1), 79-102.
[4]. Gomber,
P., Koch, J. A., & Siering, M., 2017, Digital Finance and FinTech: current
research and future research directions. Journal of Business Economics,
87, 537-580.
[5]. Dharmadasa,
P. D. C. S., 2021, Fintech services” and the future of financial
intermediation: a review. Sri Lanka Journal of Economic Research, 8(2),
21.
[6]. Sahay,
M. R., von Allmen, M. U. E., Lahreche, M. A., Khera, P., Ogawa, M. S.,
Bazarbash, M., & Beaton, M. K, 2020, The promise of fintech: Financial
inclusion in the post COVID-19 era. International Monetary Fund.
[7]. Anand,
D., & Mantrala, M., 2019, Responding to disruptive business model
innovations: the case of traditional banks facing fintech entrants. Journal
of Banking and Financial Technology, 3, 19-31.
[8]. Hua,
X., & Huang, Y., 2021, Understanding China’s fintech sector: development,
impacts and risks. The European Journal of Finance, 27(4-5), 321-333.
[9]. Tidjani,
C., 2020, Readiness to the FinTech industry in developing countries: an
overview of prospective factors impacts. Handbook on Ethics in Finance,
1-32.
[10]. Goswami,
S., Sharma, R. B., & Chouhan, V., 2022, Impact of financial technology
(Fintech) on financial inclusion (FI) in Rural India. Universal Journal of
Accounting and Finance, 10(2), 483-497.
[11]. Tarawali,
J. F., 2020, Impacts of FinTech innovations on financial inclusion in
developing countries and the challenges they face-A case study on Sierra Leone (Doctoral
dissertation, Politecnico di Torino).
[12]. Harsono,
I., & Suprapti, I. A. P., 2024, The role of fintech in transforming
traditional financial services. Accounting Studies and Tax Journal (COUNT),
1(1), 81-91.
[13]. Song,
N., & Appiah-Otoo, I., 2022, The impact of fintech on economic growth:
Evidence from China. Sustainability, 14(10), 6211.
[14]. Yáñez-Valdés,
C., & Guerrero, M., 2023, Assessing the organizational and ecosystem
factors driving the impact of transformative FinTech platforms in emerging
economies. International Journal of Information Management, 73, 102689.
[15]. Kandpal,
V., & Mehrotra, R., 2019, Financial inclusion: The role of fintech and
digital financial services in India. Indian Journal of Economics &
Business, 19(1), 85-93.
[16]. Madichie,
N. O., Nkamnebe, A. D., & Ekanem, I. U., 2020, Marketing in the informal
economy: an entrepreneurial perspective and research agenda. Entrepreneurship
Marketing, 412-428.
[17]. Farazi,
S., 2014, Informal firms and financial inclusion: status and determinants. Journal
of international commerce, Economics and policy, 5(03), 1440011.
[18]. Salampasis,
D., & Mention, A. L., 2018, FinTech: Harnessing innovation for financial
inclusion. In Handbook of blockchain, digital finance, and inclusion,
volume 2 (pp. 451-461). Academic Press.
[19]. Odei-Appiah,
S., Wiredu, G., & Adjei, J. K., 2022, Fintech use, digital divide and
financial inclusion. Digital Policy, Regulation and Governance, 24(5),
435-448.
[20]. Beck,
T., 2020, Fintech and financial inclusion: Opportunities and pitfalls (No.
1165). ADBI working paper series.
[21]. Makina,
D., 2019, The potential of FinTech in enabling financial inclusion. In
Extending financial inclusion in Africa (pp. 299-318). Academic Press.
[22]. W. E.
F. Ward., 2023, A history of Ghana. Routledge.
[23]. Yendaw,
E., 2022, Cross-border migration of itinerant immigrant retailers in Ghana. Journal
of International Migration and Integration, 23(1), 205-225.
[24]. Adei,
D., Braimah, I., Mensah, J. V., Acquah Mensah, A., & Agyemang-Duah, W.,
2021, Improving upon the working environment of informal sector workers in
Ghana: The role of planning. Cogent Medicine, 8(1), 1911441.
[25]. Senyo,
P. K., Karanasios, S., Agbloyor, E. K., & Choudrie, J., 2024,
Government-Led digital transformation in FinTech ecosystems. The Journal of
Strategic Information Systems, 33(3), 101849.
[26]. Asif,
M., Khan, M. N., Tiwari, S., Wani, S. K., & Alam, F., 2023, The impact of
fintech and digital financial services on financial inclusion in India. Journal
of Risk and Financial Management, 16(2), 122.
[27]. Thermaenius,
V., & Östling, L., 2018, Financial Inclusion in the Age of FinTech: A
multiple case study of FinTech companies’ role for financial inclusion in
India.
[28]. Coffie,
C. P. K., & Hongjiang, Z., 2023, FinTech market development and financial
inclusion in Ghana: The role of heterogeneous actors. Technological
Forecasting and Social Change, 186, 122127.
[29]. Jack,
W., & Suri, T., 2014, Risk sharing and transactions costs: Evidence from
Kenya's mobile money revolution. American Economic Review, 104(1),
183-223.
[30]. Nan,
W., Zhu, X., & Lynne Markus, M., 2021, What we know and don't know about
the socioeconomic impacts of mobile money in Sub‐Saharan Africa: A systematic
literature review. The Electronic Journal of Information Systems in
Developing Countries, 87(2), e12155.
[31].
Broni Jr, F. E., & Owusu, A., 2020,
Blockchain readiness: expert perspectives from a developing economy. In
Handbook of Research on Managing Information Systems in Developing Economies
(pp. 160-177). IGI Global
