IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i17p13039-d1228384.html
   My bibliography  Save this article

Attaining Sustainable Development Goals through Financial Inclusion: Exploring Collaborative Approaches to Fintech Adoption in Developing Economies

Author

Listed:
  • Sagir Danladi

    (Department of Accounting, Modibbo Adama University, P.M.B. 2076, Yola 640001, Nigeria
    GITAM School of Business, GITAM University, Visakhapatnam 530045, India)

  • M. S. V. Prasad

    (GITAM School of Business, GITAM University, Visakhapatnam 530045, India)

  • Umar Muhammad Modibbo

    (Department of Operations Research, Modibbo Adama University, P.M.B. 2076, Yola 640001, Nigeria)

  • Seyedeh Asra Ahmadi

    (Department of Logistics, Tourism and Service Management, German University of Technology in Oman, Muscat 1816, Oman)

  • Peiman Ghasemi

    (Department of Business Decisions and Analytics, University of Vienna, Kolingasse 14–16, 1090 Vienna, Austria)

Abstract

This study proposes a multi-stakeholder framework to enhance fintech use in Africa, aiming to improve financial inclusion and achieve the Sustainable Development Goals. This article analyzes past research and frameworks built to help stakeholders in developing nations adopt fintech, some of which have been tested in African states with limited success. The study recommends prioritizing national ownership, creating an enabling environment for private sector investment, partnering with multilateral development banks and other stakeholders, fostering innovation and digital literacy, and focusing on cost-effective, non-government-guaranteed financing. In accordance with the G20’s High-Level Principles for Digital Financial Inclusion, a country-specific strategy can boost financial technology and digital financial services uptake in Africa. Each government may build a legislative climate that supports innovation and competition, strengthens its digital infrastructure, increases digital literacy and awareness, and collaborates with private sector stakeholders to extend financial inclusion. Partnerships with businesses, international organizations, and other nations can help The Better Than Cash Alliance (TBTCA) promote fintech adoption. Countries can use fintech companies to build and implement national digital payment infrastructure by joining the Alliance. Finally, the mSTAR program advises cooperating with USAID to promote marginalized people, incorporate digital financial services, increase public–private engagement, and educate and train policymakers, practitioners, and technologists. These ideas can help African governments adopt fintech products faster and enhance financial inclusion.

Suggested Citation

  • Sagir Danladi & M. S. V. Prasad & Umar Muhammad Modibbo & Seyedeh Asra Ahmadi & Peiman Ghasemi, 2023. "Attaining Sustainable Development Goals through Financial Inclusion: Exploring Collaborative Approaches to Fintech Adoption in Developing Economies," Sustainability, MDPI, vol. 15(17), pages 1-14, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:17:p:13039-:d:1228384
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/17/13039/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/17/13039/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Franklin Allen & Elena Carletti & Robert Cull & Jun Qian & Lemma Senbet & Patricio Valenzuela, 2014. "Resolving the African Financial Development Gap: Cross-Country Comparisons and a Within-Country Study of Kenya," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 13-62, National Bureau of Economic Research, Inc.
    2. Dean Karlan & Robert Osei & Isaac Osei-Akoto & Christopher Udry, 2014. "Agricultural Decisions after Relaxing Credit and Risk Constraints," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 597-652.
    3. Robin Burgess & Rohini Pande, 2005. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," American Economic Review, American Economic Association, vol. 95(3), pages 780-795, June.
    4. Allen, Franklin & Demirguc-Kunt, Asli & Klapper, Leora & Martinez Peria, Maria Soledad, 2016. "The foundations of financial inclusion: Understanding ownership and use of formal accounts," Journal of Financial Intermediation, Elsevier, vol. 27(C), pages 1-30.
    5. Hamdi, Helmi & Hakimi, Abdelaziz, 2015. "Did banks and financial markets developments lead to economic growth in MENA region? Evidence from Dynamic panel data estimation," MPRA Paper 64310, University Library of Munich, Germany.
    6. Ozili, Peterson Kitakogelu, 2021. "Financial inclusion-exclusion paradox: how banked adults become unbanked again," MPRA Paper 108494, University Library of Munich, Germany.
    7. Robert Jeyakumar Nathan & Budi Setiawan & Mac Nhu Quynh, 2022. "Fintech and Financial Health in Vietnam during the COVID-19 Pandemic: In-Depth Descriptive Analysis," JRFM, MDPI, vol. 15(3), pages 1-19, March.
    8. Leonardo Salvatore Alaimo & Andrea Ciacci & Enrico Ivaldi, 2021. "Measuring Sustainable Development by Non-aggregative Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(1), pages 101-122, August.
    9. Luiz Antonio Joia & Joaquim Pedro Vasconcelos Cordeiro, 2021. "Unlocking the Potential of Fintechs for Financial Inclusion: A Delphi-Based Approach," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    10. Asli Demirguc-Kunt & Leora Klapper, 2013. "Measuring Financial Inclusion: Explaining Variation in Use of Financial Services across and within Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(1 (Spring), pages 279-340.
    11. World Bank, 2014. "Global Financial Development Report 2014 : Financial Inclusion," World Bank Publications - Books, The World Bank Group, number 16238.
    12. Asli Demirguc-Kunt & Leora Klapper, 2013. "Measuring Financial Inclusion: Explaining Variation in Use of Financial Services across and within Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(1 (Spring), pages 279-340.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Salma S. Abed & Rotana S. Alkadi, 2024. "Sustainable Development through Fintech: Understanding the Adoption of Buy Now Pay Later (BNPL) Applications by Generation Z in Saudi Arabia," Sustainability, MDPI, vol. 16(15), pages 1-19, July.
    2. Lorena Espina-Romero & Doile Ríos Parra & José Gregorio Noroño-Sánchez & Gloria Rojas-Cangahuala & Luz Emerita Cervera Cajo & Pedro Alfonso Velásquez-Tapullima, 2024. "Navigating Digital Transformation: Current Trends in Digital Competencies for Open Innovation in Organizations," Sustainability, MDPI, vol. 16(5), pages 1-19, March.
    3. Pandwe Aletha Gibson, 2023. "Shortening the Supply Chain through Smart Manufacturing and Green Technology," Sustainability, MDPI, vol. 15(22), pages 1-10, November.
    4. Yasmeen, Rizwana & Huang, Haiping & Shah, Wasi Ul Hassan, 2024. "Assessing the significance of FinTech and mineral resource depletion in combating energy poverty: Empirical insights from BRICS economies," Resources Policy, Elsevier, vol. 89(C).
    5. Pang, Dezhi & Jin, Xin & Zheng, Kengcheng & Tien, Nguyen Hoang, 2024. "A road toward green growth: Optimizing the role of mineral resources, fintech innovation and effective governance in G-20 economies," Resources Policy, Elsevier, vol. 92(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Singh, Nirvikar, 2018. "Financial Inclusion: Concepts, Issues and Policies for India," MPRA Paper 91047, University Library of Munich, Germany.
    2. Noha Emara & Mahmoud Mohieldin, 2020. "Financial inclusion and extreme poverty in the MENA region: a gap analysis approach," Review of Economics and Political Science, Emerald Group Publishing Limited, vol. 5(3), pages 207-230, July.
    3. Ghosh, Saibal, 2016. "Does mobile telephony spur growth? Evidence from Indian states," Telecommunications Policy, Elsevier, vol. 40(10), pages 1020-1031.
    4. Gallego-Losada, María-Jesús & Montero-Navarro, Antonio & García-Abajo, Elisa & Gallego-Losada, Rocío, 2023. "Digital financial inclusion. Visualizing the academic literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    5. Grohmann, Antonia & Klühs, Theres & Menkhoff, Lukas, 2018. "Does financial literacy improve financial inclusion? Cross country evidence," World Development, Elsevier, vol. 111(C), pages 84-96.
    6. Thi Anh Nhu Nguyen & Thi Thuy Huong Luong, 2023. "The Determinants of Financial Inclusion in Vietnam: A Demand-Side Approach," SAGE Open, , vol. 13(4), pages 21582440231, November.
    7. Thereza Balliester Reis, 2022. "Socio‐economic determinants of financial inclusion: An evaluation with a microdata multidimensional index," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 587-611, April.
    8. Helena Susana Amaral Geraldes & Ana Paula Matias Gama & Mário Augusto, 2022. "Reaching Financial Inclusion: Necessary and Sufficient Conditions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(2), pages 599-617, July.
    9. Saibal Ghosh, 2020. "Access to and use of finance in India: does religion matter?," Indian Economic Review, Springer, vol. 55(1), pages 67-92, June.
    10. Dar, Shafkat Shafi & Sahu, Sohini, 2022. "The effect of language on financial inclusion," Economic Modelling, Elsevier, vol. 106(C).
    11. Mr. Adrian Alter & Boriana Yontcheva, 2015. "Financial Inclusion and Development in the CEMAC," IMF Working Papers 2015/235, International Monetary Fund.
    12. Ndlovu, Godfrey & Toerien, Francois, 2020. "The distributional impact of access to finance on poverty: evidence from selected countries in Sub-Saharan Africa," Research in International Business and Finance, Elsevier, vol. 52(C).
    13. Yan, Yu & Qi, Shusen, 2021. "Childhood matters: Family education and financial inclusion," Pacific-Basin Finance Journal, Elsevier, vol. 65(C).
    14. Saibal Ghosh, 2020. "Financial Inclusion in India: Does Distance Matter?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 21(2), pages 216-238, September.
    15. Menyelim M. Chima & Abiola Ayopo Babajide & Alex Adegboye & Segun Kehinde & Oluwatobi Fasheyitan, 2021. "The Relevance of Financial Inclusion on Sustainable Economic Growth in Sub-Saharan African Nations," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    16. Amit Pandey & Ravi Kiran & Rakesh Kumar Sharma, 2022. "Investigating the Impact of Financial Inclusion Drivers, Financial Literacy and Financial Initiatives in Fostering Sustainable Growth in North India," Sustainability, MDPI, vol. 14(17), pages 1-21, September.
    17. Md Abdullah Omar & Kazuo Inaba, 2020. "Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    18. Morgan, Peter J. & Long, Trinh Quang, 2020. "Financial literacy, financial inclusion, and savings behavior in Laos," Journal of Asian Economics, Elsevier, vol. 68(C).
    19. Ma, Yechi & Ding, Yibing & Bu, Ziwen & Li, Suyang, 2024. "Political freedom and financial inclusion: Unraveling social trust and political rent-seeking," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 46-65.
    20. Vanesa Pesqué‐Cela & Lihui Tian & Deming Luo & Damian Tobin & Gerhard Kling, 2021. "Defining and measuring financial inclusion: A systematic review and confirmatory factor analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 316-341, March.

    More about this item

    Keywords

    fintech; financial inclusion; maximizing finance for development; the G20 high-level principles for digital financial inclusion; mSTAR; developing countries; sustainable development goals;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

    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:gam:jsusta:v:15:y:2023:i:17:p:13039-:d:1228384. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.