IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v96y2024ipbs1059056024006634.html
   My bibliography  Save this article

Financial inclusion effects of engaging with the fintech ecosystem

Author

Listed:
  • Kodongo, Odongo

Abstract

Using the FinAccess Kenya Household Survey dataset, we construct a metric of individual engagement with the fintech ecosystem and examine its linkage with consumption of traditional financial products. Deploying a battery of econometric procedures, we document a pervasive gap in the usage of traditional financial products, ranging from 5.3% to 17.5%, between individuals who engage with the fintech ecosystem and those who do not. Treatment-effects procedures yield evidence that engaging with the fintech ecosystem improves individuals’ usage of traditional financial products by about 4 percentage points. The positive impact of the fintech ecosystem on the usage of traditional financial products is enabled by fintech mitigating the distance barrier. Interestingly, our findings suggest that the fintech ecosystem does not perform well in addressing financial inclusion inequalities facing young adults, women, the less educated and less wealthy people. We offer policy guides and future research suggestions anchored on these findings.

Suggested Citation

  • Kodongo, Odongo, 2024. "Financial inclusion effects of engaging with the fintech ecosystem," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    • Handle: RePEc:eee:reveco:v:96:y:2024:i:pb:s1059056024006634
    DOI: 10.1016/j.iref.2024.103671
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024006634
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.103671?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Fintech ecosystem; Financial inclusion; Financial products; Engagement;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:96:y:2024:i:pb:s1059056024006634. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.