ABSTRACT
This study investigated the effect of digital financial services, financial inclusion and economic development in Sub-Saharan Africa (SSA). Economic development was proxied by human capital development index (HDI) while digital financial services was proxied by automated teller machine (ATM) volume transactions, point of sale volume of (POS) transactions, mobile banking service (MBS) volume transactions, number of ATMs available and number of commercial banks. Five SSA countries, namely, Nigeria, Ghana, Uganda, Cabo Verde and Kenya were chosen for the study. The data used for the study spanned from 2009 to 2020. The study was anchored on the Technology Acceptance Theory which is based on the belief that improvement in the economy is enhanced through using particular new technology and information system in business transactions. Panel unit root test carried out using different criteria showed that the data set were largely stationary at levels. Consequently, the fixed effects model was used for the analysis based on the outcome of the Hausman test. The results showed that the volume of ATM transactions Panel unit root test carried out using different criteria showed that the data set were largely stationary at levels. The results showed that the volume of ATM transactions and the number of ATMs had negative effect on HDI, implying that the higher the ATM usage and number of ATM available the lower economic development in SSA. The results of POS volume transactions, mobile banking volume transactions and number of commercial banks had increasing effect on economic development in SSA. Of all the independent variables, the volume of ATM transactions, POS transactions, mobile banking transactions and number of commercial banks were the most significant while number of ATM available was the only non-significant variable. The negative and significant effect of volume of ATM transactions, this study recommends that banks should ensure that ATMs provide convenience for customers by installing more of them and making them accessible and usable while also considering the rate charged for rendering such services. Consequently, the study concluded that digital financial services is a long road which SSA needs to travel and make the economy significantly successful.
TABLE OF CONTENTS
Cover page i
Title Page ii
Certification iii
Declaration iv
Dedication v
Acknowledgements vi
Table of
content
vii
List of
Tables viii
List of
Figures ix
Abstract x
CHAPTER 1: INTRODUCTION
1.1
Background of the Study 1
1.2 Statement of the Problem 5
1.3 Objectives of the Study 6
1.4 Research Questions 7
1.5 Research Hypotheses 8
1.6
Scope of the Study 8
1.7 Significance of the Study 9
1.8 Limitations of the Study 11
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework. 12
2.1.1 Concept of Digital Financial Services 12
2.1.2 Information On Selected SSA
Countries' Digital Financial Services
and Financial
Inclusion 14
2.1.2.1 Nigeria 14
2.1.2.2 Ghana 15
2.1.2.3 Kenya 15
2.1.2.4 Uganda 17
2.1.2.5 Cabo Verde 18
2.1.3 Digital Financial Services 19
2.1.4 Digital
Financial Services Channels 19
2.1.4.1
Automated Teller
Machine (ATM) 20
2.1.4.2 Mobile Banking Services 21
2.1.4.3 Point of Sale. (POS) 23
2.1.4.4 Short Message Service (SMS Banking)
24
2.1.4.5 Internet Banking Service 24
2.1.4.6 Unstructured Supplementary
Service Data (USSD) 25
2.1.4.7 Digital Payment System 25
2.1.5 The World Development Report
Identifies Innovations in Digital Payments. 27
2.1.6 How Does Digital Payments Work? 28
2.1.7 Merits of Digital Payments. 28
2.1.8 Demerits of Digital Payments 29
2.1.9 Electronic Banking System 30
2.1.10
Positive Relationship Between Digital Finance and Financial Inclusion 41
2.1.11
Negative Effect Between Digital Finance and Financial Inclusion. 42
2.1.12 The Pandemic and Digital
Financial Services 43
2.1.13 Impact of Covid -19 Pandemic on Digital
Financial Inclusion. 45
2.1.14
Overview of Digital Financial Inclusion 46
2.1.16 The Role of Digital Financial Inclusion in Meeting the Sustainable
Development Goals
(SDGS) 49
2.1.17 Financial Inclusion 49
2.1.18 Financial Inclusion
Determinants 57
2.1.19 Promoting Financial Inclusion 59
2.1.20
Components of Financial Inclusion 60
2.1.21 Hierarchy of Financial Needs
Satisfaction Demonstrating Improved Financial
Inclusion with
Higher Degree of Inclusion 61
2.1.22 Benefits of Financial
Inclusion 63
2.1.23 Contributions of Microfinance
Banks (MFB) To Financial Inclusion 65
2.1.24 Poverty and Financial
Inclusion 69
2.1.25 Financial Inclusion and
Unemployment 69
2.1.26 How New Technologies Create a
Pathway to Financial Inclusion 70
2.1.27 Financial Inclusion Solves Societal
Challenges 71
2.1.28 Financial Inclusion and Bank
Stability 72
2.1.29 Financial Inclusion and
Digital Finance Services 73
2.1.30 Financial Inclusion and
Economic Growth 74
2.1.31 The Relationship Between
Financial Inclusion and Economic Development 75
2.1.32 The Concept of Economic Growth and Development 76
2.1.33 The Relationship Between Financial
Inclusion and Human Development 79
2.1.34
Financial Inclusion and Human Development 82
2.1.35 Economic Development 85
2.1.36 Review of Some Selected Economic Development Variables 86
2.1.38 Human Development 92
2.2 Theoretical Review 95
2.2.1 Technology Acceptance Theory 95
2.2.2 Diffusion of Innovation Theory 95
2.2.3 Financial Intermediation Theory 96
2.2.4 Theory of Financial Innovations
96
2.2.5 Bank-Led Theory 97
2.3 Empirical Review 98
2.4 Gap in Literature 149
CHAPTER 3: METHODOLOGY
3. 1 Research Design 152
3.2 Nature and Sources of Data 152
3.3 Model Specification 153
3.4 Description and Justification of
Model Variables 155
3.4.1 Dependent Variable 155
3.4.2 Independent Variables 155
3.4.3 Operationalization of Variables 157
3.5 Target Population 158
3.6 Sample Size 158
3.7
Techniques of Data Analysis 158
3.7.1
Trend Analysis 158
3.7.2
Descriptive Statistics 159
3.7.3
Stationarity Tests 159
3.7.4
Multicollinearity Test 160
3.7.5 Fixed
Effects (FE) and Random Effects (RE) Models 160
3.7.6 Hausman Test 162
CHAPTER 4: PRESENTATION OF DATA, ANALYSIS AND
DISCUSSIONS
4.1 Presentation of Data 163
4.2 Trend Analysis of Data 166
4.2.1 Trend of Human Capital
Development Index (Hdi) Among Selected Countries
of SSA 166
4.2.2 Trend of Volume of Automated
Teller Machine (ATM) among Selected
Countries of SSA 167
4.2.3 Trend of POS in SSA Countries
Among Selected Countries of SSA.
4.2.4 Trend of Volume of Mobile
Transactions (MBS) Among Selected Countries of SSA.169
4.2.5 Trend of Number of Automated
Teller Machines Per 100,000 Adults (NATM)
among Selected Countries
of SSA 170
4.2.6 Trend of Number of Number of Micro
Finance Bank Per 100,000 Adults (NCOB)
among
Selected Countries of SSA 171
4.3 Descriptive Statistics 171
4.4
Pre-Estimation Tests 173
4.4.1 Unit Root Test 173
4.4.2 Correlation Analysis and Multicollinearity Test 175
4.5
Panel Regression Estimation 176
4.5.1
Pooled Model 176
4.5.2 Fixed Effects Model 178
4.5.3
Random Effects 180
4.5.4
Choosing The Best Model 181
4.5.5
Panel Least Squares Diagnostics 182
4.6 Heterogeneity in the Deployment of
Digital Financial Services among the
SSA
Countries 184
4.7 Heterogeneity and Contribution of
Digital Financial Services, Financial Inclusion
Among the SSA Countries
using Correlation 185
4.7
Test of Hypotheses 187
4.8
Discussion of Findings 188
4.9.1 The Effect of ATM Transaction
Volume on Economic Development in SSA 189
4.9.2 The Effect of POS Transaction
Volume on Economic Development in SSA 190
4.9.3 The Effect of Mobile
Transaction Volume on Economic Development in SSA 191
4.9.4 The Effect of Number of ATMS on
Economic Development in SSA 191
4.9.5 The Effect of Number of
Commercial Banks on Economic Development in SSA 192
CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSION
RECOMMENDATIONS
5.1 Summary of Findings 193
5.2
Conclusion 194
5.3
Recommendations 194
5.4 Contribution to Knowledge 196
References
LIST OF TABLES
Table 2.1: The Comparison Between
Economic Growth and Economic Development. 78
Table 3.1 Summarizes The Operationalization
of the Model Variables 157
Table 3.2: Operationalization of
Variables 157
Table 4.1: Panel Data 163
Table 4.2: Descriptive Statistic 172
Table
4.3: Summary of Panel Unit Root Test 174
Table 4.4: Correlation Analysis 175
Table
4.5: Variance Inflation Factor (VIF) 176
Table
4.6: Panel Regression (Pooled) 177
Table 4.7. Fixed Effects 179
Table
4.8: Random Effects 180
Table 4.9: Hausman Test 181
Table
4.10: Residual Cross-Section Dependence Test Results 182
Table
4.11: The Redundant Fixed Effect Test 183
Table 4.12 Shows The Heterogeneity
and Contribution of Digital Financial Services,
Financial
inclusion among the SSA Countries Using Correlation 185
Table 4.13: Hypotheses Testing 188
LIST OF FIGURES
Figure 2.1: A Flow Chart Showing
Mobile Banking Services 22
Figure 2.2: Flowchart for Illustrating the Significance of
Electronic Banking In
Various A
Applications 32
Figure 2.3: Financial Inclusion Parameters and
Measurement Flowchart 56
Figure 2.4: Access to Financial
Services 61
Figure 2.5: A Typical SSA Business Retailer's Hierarchy
of Financial Needs Satisfaction 62
Fig.2.6
Causation Between Financial Inclusion and Human Development
A Conceptual Framework 81
Figure 2.7: The Human Development
Index Flow Chart Indicating Dimensions,
Indicators, and
Dimension Index 94
Fig. 4.1: Trend of Human Development Index (HDI) among
Selected Countries of SSA 166
Fig. 4.2: Trend of Automated Teller Machine
Transactions (ATM) Among Selected
Countries of SSA 167
Fig. 4.3: Trend of Point of Sale (POS) Among Selected
Countries of SSA 168
Fig. 4.4: Trend of Mobile Transaction (Mobile) among
Selected Countries of SSA 169
Fig. 4.5: Trend of Number of Automated Teller Machine
(NATM) among Selected Countries \
of SSA 170
Fig. 4.6: Trend of Number of
Microfinance Banks (NCOB) among Selected Countries of SSA171
Figure 4.7: Normal Distribution
Histogram 184
Figure 4.8: Level of Financial
Digitalization in Sub-Saharan Africa among
Selected SSA
Countries 184
CHAPTER 1
INTRODUCTION
1.1
BACKGROUND TO THE STUDY
Digital
technologies have been developed to make it simpler for local citizens who
cannot otherwise afford a bank account to access extra financial services,
making them financially privileged. (Anarfo and Abor, 2020). Digital
technologies are also said to be helpful for achieving sustainable development
and for integrating the financial system. (Asongu, Biekpe and Cassimon, 2021;
Nchofoung and Asongu, 2022). The growth in the number of account holders in
Sub-Saharan Africa (SSA) is an indication of financial development (Kouladoum,
Wirajing, and Nchofoung, 2022). This study which focused on specific SSA
countries such Nigeria, Ghana, Cabo Verde, Kenya, and Uganda. However, the
question of whether digital technology improves the SSA financial sector by
allowing more people access to financial services or makes it more vulnerable
to attacks has been raised. It does both, is the correct response.
Policymakers
and scholars have given digital financial inclusion a lot of attention in
recent years. (Ozili, 2018). It is
regarded as a change agent with the potential to bring about a revolutionary
advancement in the international financial industry. The concept, the
proportion of people and businesses who use digital platforms to obtain and use
official financial services is known as digital financial inclusion.
Financial
systems in developed and emerging nations have evolved as a result of
digitization. (Chinoda and Kapingura, 2023). Financial inclusion is increasing
as a result of fewer barriers in traditional financial systems, which is also
recognized as a critical factor in reaching the 2030 Sustainable Development
Goals (Kooli, Shanikat and Kanakriyah, 2022; Allen, Demirguc- Kunt, Klapper and
Peria 2016). It has been argued that nations with high levels of digital
financial inclusion are better prepared to handle challenges associated with
economic growth and development. (Khera, Ng and Ogawa 2021; Shen, Hu and Hueng,
2021; Thaddeus, Ngong and Manasseh, 2020). Therefore, increasing digital
financial inclusion can benefit several people and organizations in those
nations that may be impacted by economic downturns (Chinoda and Kapingura,
2023). People in some nations cannot purchase financial services due to the
high poverty rate, which makes living miserable. The growth of rural
inhabitants will benefit from this, though, since sustainable development goals
are created to guarantee that everyone is involved in the development plans
(Adeleye and Eboagu, 2019). Digital technology ensures the affordability of
financial services for those who are less privileged. The stability of digital
financial services is not assured due to technological advancements and
increased competition among financial institutions, which has led many people
to question the regulatory impact of digitalization on the stability of the
financial system.
Digital
financial services (DFS) are frequently seen as a productive approach to
generate opportunities to enhance financial inclusion because they lower the
cost of delivering these services. They lower transaction costs for businesses
while promoting financial inclusion. It is also referred to be the complete
technology available for using digital remote techniques to supply financial
services from a wide variety of providers to a wide variety of receivers.
(Including e-money, mobile money, card payments, and electronic funds
transfers). In addition to facilitating money transfers, DFS provides a safe
place to store electronic money (sometimes referred to as mobile money or
e-money) (Buckley, Malady, Stanley and Tsang, 2016). Agur, Peria, and Rochon
(2020) further described digital financial services as financial services (such
payments, remittances, and credit) available and provided through digital
channels, such as mobile devices, the internet, web transactions, point of
sale, etc. These include tried-and-true instruments (like debit and credit
cards, which are often offered by banks), as well as innovative a roaches based
on digital platforms, cloud computing, and distributed ledger technology (DLT),
which include peer-to-peer (P2P) applications, digital currency, and
crypto-assets.
Financial
inclusion is one of the key drivers of economic growth, as it also helps to
fight poverty and may be utilized to lessen social exclusion (Aaluri, Narayana
and Kumar, 2016). Financial inclusion may be improved by the usage of Digital
Financial Services (DFS), which has been highlighted as one of the key
financial solutions. Market forces alone cannot ensure the provision of goods
and services that are required to meet end users' wants, means, or wishes
because the targeted end users often have little to provide in comparison to apparent
profitable prospects. DFS's potential could be harmed by insufficient adoption
and use, which would have a negligible effect on the phenomenon of financial
inclusion (Demirgüç-Kunt, Klapper, Singer, Van and Oudheusden 2015; Ozili, 2020
a and b). Financial inclusion (FI), which is defined as having access to and
using formal financial services to enhance individual welfare in a nation,
enables people to start their own businesses, save money for the future, and
invest in their children. This lessens poverty and advances development of the
individual, the economy, and society (Ozili, 2018). Financial inclusion, often
referred to as inclusive finance, is the provision of financial services at a
reasonable cost to members of the underprivileged and low-income sector of
society, as confirmed by the Central Bank of Nigeria (2011). It entails
providing a wide range of high-quality financial products that are applicable,
appropriate, and within the capabilities of the adult population as a whole,
especially the low-income group. These products include savings, credit,
payments, insurance, and provisions.
Economic
development is generally understood by Myint and Krueger (2016) and Panth (2021)
to be the structural transformation of an economy through the use of more
advanced and automated technologies in order to increase labor productivity,
employment, incomes, and population growth. Economic development should be supported
by changes to the institutional, economic, and political settings in order to
permit the transformation of the economy. A country's attempts to fight poverty
are regarded to be greatly aided by economic growth since it allows for higher
incomes, more job possibilities, the delivery of better goods and services, and
the use of cutting-edge industrial technologies. Audu (2012) stated that
economic advancement leads to better self-esteem standards, freedom from
persecution, and more possibilities. It is a process that results in long-term
improvements in a country's political, social, and technological economic
institutions as well as an increase in real national income. The ordinary
person's real income increases as a result.
The
standard of financial inclusion is predicted to drive the economy towards
higher indices of growth and development by producing resources (and allowing
access) for investment and economic reasons where they are not presently
available. (Okonkwo and Nwanna, 2021). In line with (Kama and Adigun, 2013)
utilizing and accumulating these resources offers a sizable supply of
accessible long-term investable capital that is reasonably priced. It also
entails bringing the gray market banking sector into the mainstream. In
general, low- and middle-income earners make up the biggest percentage of the
population and hold the majority of the economy's idle fund (Nwafor and Yomi,
2018). Although each of the several million members of this group has only a
modest amount of these funds, using and gathering these resources gives a
substantial foundation of accessible long-term investable capital. Kazeem
(2017) agreed most economies that have not fully embraced financial inclusion
are frequently constructed in a way that a sizeable percentage of money flows
in the unofficial sector, which is detrimental to both society and the
individual. Financial inclusion has grown in importance since the early 2000s
as a crucial component of achieving inclusive economic growth and development
that is self-sustaining. Decision-makers, academics, and development
organizations all over the world adore it (Ezenwakwelu, 2018).
In
this era of technological innovation, the banking industry must thrive in order
to extend the maturity of the product life cycle (Babarinde, Gidigbi, Ndaghu,
and Abdulmajeed, 2020). Digital financial services (DFS) have been considered
to be of great relevance to the general public in addition to enhancing
currency security and being more convenient than leaving cash at home or
carrying it when traveling (Shofawati, 2019).
For the provision of DFS, a variety of actors are needed, including
banks and other financial institutions, mobile network carriers, regulators,
financial technology companies, agents, retailers, and customers.
Infrastructure needs to be improved in order to make DFS more user-friendly,
secure, and cost-effective (Shofawati, 2019). Digital disruption has the
ability to lessen the role and importance of today's banks while also supporting
them in the creation of better, quicker, and less expensive services. (Agufa,
2016).
Financial
inclusion benefits are inherent in digital finance (Fintech), given its
qualities like sharing, convenience, low cost, and simple access,
(availability, accessibility, affordable). Dara (2018) highlighted the
importance of financial innovation in this decade. But the rise of digital
financial services which has attracted the attention of many countries, including
SSA, will help to increase financial inclusion by utilizing digital technology.
It is also necessary to develop a trustworthy and inclusive level of financial
inclusion and digital financial services in order to evaluate the extent of
financial inclusion in various SSA countries, examine different government
policies and initiatives, and ascertain the connection between financial
inclusion and digital financial services in SSA with a view to determining
their effect on economic development.
1.2
STATEMENT OF THE PROBLEM
Majority of rural residents lack good
education at all levels but bad attitude to digital financial operations. The
speed at which people can undertake digital financial services varies by education
level. Comparatively someone with suitable education, a person can do multiple
transaction within a short time. Conversely a person with limited education
typically finds it challenging to do many digital financial services.
Therefore, poor education and bad attitude has an impact on digital financial
services.
Banks
make money from a range of transactions carried out at points of sale, on
mobile banking platforms, and through automated teller machines. With an
increase in transactions, the bank makes more money from each individual account.
Lower transaction volume, however, can affect the withdrawals banks make from
their customers' accounts, which will cut into their earnings.
In
remote locations, it is exceedingly difficult to find commercial banks and
automated teller machines. Banks are cautious about installing off-site
automated teller machines (ATM) and opening branches in outlying areas. Security
risks, poor internet access, insufficient power sources, and a poor road system
are some of the significant challenges that banks face while maintaining
off-site ATMs. When opening new bank branches, the majority of banks take into
account the size of the local economy, the availability of markets that can support
bank branches, operational costs, staffing, insufficient power supply, insufficient
road network, security concerns, and all of these make the people in the rural
areas financially excluded, but this work will introduce digital financial
services channels to rural dwellers to make them financially inclusive.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is
to evaluate the effects of digital financial services and financial inclusion
on economic development in Sub Sahara Africa. This can be achieved through the
following specific objectives to:
1)
determine the effects of
Automated Teller Machine (ATM) volume of transactions on the economic
development of selected Sub - Saharan African countries.
2)
examine the influence of Mobile
Banking Services (MBS) volume of transactions on the economic development of
selected Sub - Saharan African countries.
3)
investigate the effects of
Point of Sale (POS) volume of transactions on the economic development of
selected Sub - Saharan African countries
4)
ascertain the availability of ATM
per 100,000 adults on economic development of selected Sub - Saharan African
countries.
5)
determine the effects of number
of commercial banks per 100,000 adults on economic development of selected Sub
- Saharan African countries.
1.4 RESEARCH QUESTIONS
This study is aimed at finding
answers to the following research questions.
1)
To what extent have ATM volume
of transactions affected the economic development of selected Sub - Saharan
African countries?
2)
In what ways does MBS volume of
transactions influence economic development of selected Sub - Saharan African
countries?
3)
How does POS volume of
transactions impact on the economic development of selected Sub - Saharan
African countries?
4)
In what ways does the availability
of automated teller machines per 100,000 adults influence economic development
of selected Sub - Saharan African countries?
5)
How can the effects of number
of commercial bank per 100,000 adults on economic development of selected Sub -
Saharan African countries be examined?
1.5 HYPOTHESES
In order to answer the research
questions, the following null hypotheses guided the study:
HO1:
Automated teller machine (ATM) volume of
transactions does not have significant effect on economic development in Sub -
Saharan African countries.
HO2:
There is no significant effect of mobile
banking services (MBS) volume of transactions on economic development of
selected Sub - Saharan African countries.
HO3:
The point of sale (POS) volume of
transactions does not exact statistically significant influence on economic
development of selected Sub - Saharan African countries.
HO4:
The availability of ATM per 100,000 adults
have no significant impact on economic development of selected Sub - Saharan
African countries.
HO5: The
amount of commercial bank per 100,000 adults does not exact statistically
significant influence on economic development of selected Sub - Saharan African
countries.
1.6 SCOPE OF THE STUDY
This
work examines the effect of digital financial services, financial inclusion and
economic development of Sub-Saharan Africa countries using data from Nigeria,
Ghana, Uganda, Cabo Verde and Kenya. The scope of this study covers the period
of 2009 to 2020. The period was sufficient to capture the impact of digital
financial services and financial inclusion on Sub-Saharan Africa's economic
development.
This
research compared effect of digital financial services, financial inclusion and
how it contributed to economic development of selected SSA countries covering
the period of 2009 to 2020. This was
aimed at analyzing how digital financial services, financial inclusion has impacted
on economic development of the chosen SSA countries. The dependent variable
used in this work was human development index which was used as a measure of
economic development, Human development index is defined by mean years of schooling,
expected years of schooling, life expectancy at birth and gross national income
per capita. While the following independent variables were employed.
Digital financial services was measured using automated teller volume of
transactions per 100,000 adults, mobile banking volume of transactions per
100,000 adults, and point of sale volume of transactions per 100,000 adults,
Whereas financial inclusion variables used are availability of automated teller
machines per 100,000 adults and number of commercial banks branches per 100,000
adults.
The
countries used in this study was selected from Sub-Saharan Africa purposively
based on the availability of data within the period under review by the
researcher. The data used for this study was sourced from the World development
indicators and Central Bank of the selected countries in SSA. This study used
time series data and product moment correlation.
1.7 SIGNIFICANCE OF THE STUDY
The
following have been discovered to be of major value as a result of research
undertaken in this field of study:
Researchers:
Building a solid financial infrastructure that supports economic growth and
development requires a strong focus on financial inclusion, which has recently
received a lot of attention in academia (Sharma 2016). This thesis provides a
framework for further qualitative and quantitative investigations into the
contextual relationship between digital financial services and financial
inclusion and economic development. The results of this study will therefore
contribute to the greater discussion on digital financial services and
financial inclusion on economic development in Sub- Saharan Africa.
Financial
inclusion significantly affects monetary and financial stability, in line with
the monetary authorities. In order to increase the impact of financial
inclusion and achieve inclusive economic growth in emerging and developing
nations, this study will provide clear signals to the monetary authorities that
it is time to reevaluate current policies. As more people gain access to formal
accounts and move their savings from informal to formal accounts, banks can
pool these new deposits and lend the money to the real economy. Because of this
study, banks will be more likely to consider the obvious trade-off when
designing methods of providing financial services to Africa's vulnerable and
marginalized, which will promote growth that is pro-poor.
Policymakers:
Research indicates that numerous African countries might see yearly GDP rises
of one to two percent by lowering their reliance on cash and taking advantage
of recent advancements in transaction account access. (Pazarbasioglu, Mora,
Uttamchandani, Natarajan, Feyen and Saal, 2020). Policymakers can utilize the
study's findings to help them create laws and rules that can hasten financial
inclusion projects and enhance their nation's financial system for long-term
economic development.
The government of
Sub-Saharan countries: This study will be of
the utmost advantage to the government of the sampled nations as they will find
the recommendations highly pertinent for making references in terms of
formulating and enacting policies.
Development
finance and development economists have a role to play in using the study's
findings to provide modules on how to use digital financial services and
financial inclusion to address poverty issues rather than adhering to some
unrealistic old growth models. This will also give a lot more people the opportunity
to take part in financial inclusion programs in their communities.
1.8 LIMITATIONS OF THE STUDY
Every scientific project has
constraints. This study's limitations in this area are as follows.
Lack of research
materials: It is difficult to get access to
high-quality journals because most of them are published for a price. These
fees are typically out of reach. The researcher was forced to turn to open
access papers and certain scholarly materials from the internet as a result,
however occasionally poor network was encountered due to its erratic nature.
Finances:
Since the researcher had to balance paying for this study with expenses for his
or her family, money was limited during the duration of this research. But in
order to make this study credible, help was gathered from friends and family.
Lack of data bank:
Nigeria lacks a common data bank, making it difficult to generate data from the
past. Although I was able to regularly monitor the data to produce the
necessary results, it took some time for me to gain access to the data from the
other countries that were also utilized.
Poor power supply:
in addition to the high expense of purchasing gasoline (petrol) and maintaining
a producing plant, poor power supply was also a problem due to noise pollution.
However,
in order to complete the study, the researcher used the opportunity cost
principle, the scale of choice, and careful resource management to overcome
these limitations.
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