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Drivers of Financial Inclusion: Insights from Sub-Saharan Africa

Author

Listed:
  • Shani Bashiru

    (Faculty of Business, Accra Technical University, Accra 00233, Ghana)

  • Alhassan Bunyaminu

    (Department of Banking and Finance, University of Professional Studies, Accra 00233, Ghana)

  • Ibrahim Nandom Yakubu

    (Department of Business Education, University for Development Studies, Tamale 00233, Ghana)

  • Mamdouh Abdulaziz Saleh Al-Faryan

    (Faculty of Business and Law, School of Accounting, Economics and Finance, University of Portsmouth, Richmond Building, Portland Street, Portsmouth PO1 3DE, UK)

Abstract

Financial inclusion has garnered global attention due to the detrimental effect that financial exclusion has on tackling socioeconomic challenges such as poverty. Using a dynamic panel approach, our study examines the drivers of financial inclusion in the context of Sub-Saharan Africa (SSA) over the period 2000 to 2017. We discover that financial globalization and literacy rates positively and significantly drive financial inclusion. We also find that rural population growth has a profound adverse impact on financial inclusion. The study further reveals that bank profitability, bank stability, and economic growth have a negative albeit insignificant effect on financial inclusion. The positive effect of financial globalization on financial inclusion has important policy implications for Sub-Saharan African countries. In this respect, the integration of the local financial system with global financial markets will facilitate efforts to achieve financial inclusion in the region.

Suggested Citation

  • Shani Bashiru & Alhassan Bunyaminu & Ibrahim Nandom Yakubu & Mamdouh Abdulaziz Saleh Al-Faryan, 2023. "Drivers of Financial Inclusion: Insights from Sub-Saharan Africa," Economies, MDPI, vol. 11(5), pages 1-11, May.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:5:p:146-:d:1145177
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    References listed on IDEAS

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