An Appraisal of the Impact of Financial Technologies (FinTechs) on Financial Inclusions in Selected Parts of Zambia
DOI:
https://doi.org/10.47941/ijf.2487Keywords:
Financial Inclusion, Financial Literacy, Constraints, Digital Finance, Financial EmpowermentAbstract
Purpose: In recent years, the rise of Financial Technologies (FinTechs) has transformed the landscape of financial services, particularly in terms of expanding access to financial products and services, known as financial inclusion. The study seeks to understand how FinTech innovations contribute to bridging the gap between the banked and unbanked, promoting financial literacy, and fostering a culture of financial empowerment.
Methodology: The study employed a mixed methods approach to gather comprehensive insights. A target sample size of 1,200 individuals was carefully selected across six districts—Chongwe, Shibuyunji, Chisamba, Lusaka, and Kafue—encompassing both urban and peri-urban areas. These districts were chosen based on evidenced statistical literacy levels, ensuring participants had sufficient understanding of financial concepts and technology. A total of 722 responses were received, resulting in a 60% response rate.
Findings: Results indicate a strong link between the emergence of FinTechs and financial inclusion. FinTech innovations, such as mobile banking, digital payments, and alternative lending platforms, have significantly lowered barriers to accessing financial services for underserved populations, including low-income individuals, small and medium-sized enterprises (SMEs), and those in remote areas. Additionally, FinTech platforms have empowered individuals by promoting financial literacy through user-friendly interfaces and personalized financial management tools. Despite these advancements, challenges persist in ensuring equitable access, particularly for marginalized communities facing digital literacy barriers, infrastructural limitations, and regulatory constraints.
Unique Contribution to Theory, Policy and Practice: The study highlights the transformative role of FinTechs in democratizing access to financial services and knowledge, fostering financial empowerment, and narrowing the gap between the banked and unbanked. However, it underscores the need for collaborative efforts among governments, financial institutions, and FinTech companies to address persistent challenges. Recommendations include developing inclusive policies, improving infrastructure, and promoting digital literacy initiatives to ensure that FinTech's potential is fully harnessed in creating a more inclusive and sustainable financial ecosystem
Downloads
References
Akudugu, M. A., Guo, E., & Dadzie, S. K. (2013). Adoption of modern agricultural production technologies byfarm households in Ghana: What factors influence their decisions? Journal of Biology, Agriculture and Healthcare, 2(3), 1-13
[accessed Jan 27 2025].
Arner, D. W., Barberis, J., & Buckley, R. P. (2015). The Evolution of FinTech: A New Post-Crisis Paradigm? Research Paper No. 2015/047, Hong Kong: University of Hong Kong, Faculty of Law.
https://dx.doi.org/10.2139/ssrn.2676553
Babbie, E. (2007). The practice of social research (11th ed.). Belmont, CA: Thompson David Lee Kuo Chuen and Robert H. Deng, 451-461.
Demirgüc-Kunt, A. and Klapper, L.F. (2012) Measuring Financial Inclusion: The Global Findex Database.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2043012
https://doi.org/10.1596/1813-9450-6025
Jack, William, and Tavneet Suri. 2014. “Risk Sharing and Transactions Costs: Evidence from Kenya’s Mobile Money Revolution: Dataset.” American Economic Review. http://dx.doi.org/10.1257/ aer.104.1.183.
Kshetri, Nir (2021)."The role of artificial intelligence in promoting financial inclusion in developing countries,” Journal of Global Information Technology Management 24(1). https://doi.org/10.1080/1097198X.2021.1871273
Musa, A., Abdullahi, B., Idi, A., Tasiu, M. (2015), Drivers of financial inclusion and gender gap in Nigeria. The Empirical Econometrics and Quantitative Economics Letters, 4(4), 186-199.
Ndiaye, N., Razak, L. A., Nagayev, R., & Ng, A. (2018). Demystifying Small and Medium Enterprises’ (SMEs) Performance in Emerging and Developing Economies. Borsa Istanbul Review, 18, 269-281.
https://doi.org/10.1016/j.bir.2018.04.003
Sahoo, A. K. (2017). Determinants of financial Inclusion in tribal districts of Odisha: An empirical investigation. Social Change, 47(1), 45–64. http://doi.org/10.1177/0049085716683072
Soumaré, I., Tchana Tchana, F. and Kengne, T.M., 2016. Analysis of the determinants of financial inclusion in Central and West Africa. Transnational Corporations Review, 8, pp. 231-249.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Sidney Kawimbe, Burton Mweemba, Francis Mukosa
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
