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Finternet in Africa: Preparing Africa for the financial system of the future

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  • Ozili, Peterson K

Abstract

The finternet is an emerging concept in global finance. The finternet is a term used to describe financial systems that are interconnected to one another like the internet. The finternet is a vision of the financial system of the future and Africa cannot be left behind in the race to transition to the finternet. But for this to happen, there is a need to understand what the finternet really is, what it means for Africa, the benefit for African countries, the mechanisms that exist today that will bring Africa closer to the finternet and the changes that need to be made today to prepare African countries for the finternet. This article explores the concept of the finternet, its definitions, benefits, and the strategies to help African countries transition to the financial system of the future which is the finternet.

Suggested Citation

  • Ozili, Peterson K, 2024. "Finternet in Africa: Preparing Africa for the financial system of the future," MPRA Paper 122166, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122166
    as

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    References listed on IDEAS

    as
    1. Raddant, Matthias & Kenett, Dror Y., 2021. "Interconnectedness in the global financial market," Journal of International Money and Finance, Elsevier, vol. 110(C).
    2. Demirguc-Kunt, Asli & Klapper, Leora, 2012. "Financial inclusion in Africa : an overview," Policy Research Working Paper Series 6088, The World Bank.
    3. Agustín Carstens & Nandan Nilekani, 2024. "Finternet: the financial system for the future," BIS Working Papers 1178, Bank for International Settlements.
    4. Joseph M. Kizza, 2013. "Mobile Money Technology and the Fast Disappearing African Digital Divide," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 5(5), pages 373-378, August.
    5. Ozili, Peterson K, 2022. "Digital financial inclusion," MPRA Paper 113789, University Library of Munich, Germany.
    6. Hsu, Po-Hsuan & Tian, Xuan & Xu, Yan, 2014. "Financial development and innovation: Cross-country evidence," Journal of Financial Economics, Elsevier, vol. 112(1), pages 116-135.
    7. Bhar, Ramaprasad & Nikolova, Biljana, 2013. "Measuring the interconnectedness of financial institutions," Economic Systems, Elsevier, vol. 37(1), pages 17-29.
    8. Philip Mader, 2018. "Contesting Financial Inclusion," Development and Change, International Institute of Social Studies, vol. 49(2), pages 461-483, March.
    9. Ozili, Peterson K, 2020. "Contesting digital finance for the poor," MPRA Paper 101812, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    finternet; financial system; financial services; interconnectedness; Africa; African countries; internet;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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