Fintech use, digital divide and financial inclusion
| DOI | https://doi.org/10.1108/DPRG-09-2021-0111 |
| Published date | 30 September 2022 |
| Date | 30 September 2022 |
| Pages | 435-448 |
| Subject Matter | Information & knowledge management,Information management & governance,Information policy |
| Author | Solomon Odei-Appiah,Gamel Wiredu,Joseph Kwame Adjei |
Fintech use, digital divide and
financial inclusion
Solomon Odei-Appiah, Gamel Wiredu and Joseph Kwame Adjei
Abstract
Purpose –Financial Technology(FinTech) innovations enablethe provision of financial services to many
unbanked across the world by increasing access. The key role of FinTech to drive financial inclusion
however suffers significant impediments including the digital divide. Nevertheless, there is paucity of
elaboratetheories on financial inclusion whileextant literature on FinTech only identifyfactors that drive its
acceptance and use with little attention to inhibitors such as the digital divide. This study aims to
investigatethe impact of FinTech usage on financial inclusionamid the digital divide.
Design/methodology/approach –This study uses the unified theory of acceptance and use of
technology (UTAUT2) and the model of digital inequality. A structural equation modeling technique is
appliedto data collected from 282 respondents in anonline survey.
Findings –The findings confirma positive influence of FinTech use on financialinclusion as well as the
influenceof performanceexpectancy and facilitating conditions on behavioralintentions. The results also
show thatdigital divide measured with access,resource and force moderate the useof FinTech.
Originality/value –This study presents a theoretical model which is unique given that UTAUT2 was
combinedwith digital divide moderators from the model of digitalinequality to explain how FinTech usage
impacts on financial inclusion. Addressing the research questions has led several theoretical
contributionsincluding the extension of the applicabilityof UTAUT2.
Keywords Digital inequality, Digital divide, Financial inclusion, UTAUT2, FinTech
Paper type Research paper
1. Introduction
Financial Technology (FinTech) is an emerging and evolving innovation that provides and
facilitates financial servicesthrough various mobile and computing devices, the internet and
payment cards (Hinson et al.,2019;Makina, 2019). Such a payment system innovation is
amplified by the increasing digitalization in various aspects of society, and the changing
consumer behavior that is outpacing the rate of innovation in traditional financial services.
Varga (2017) has described FinTech organizations as ventures engaged in the
development of financial services which are technology-enabled, novel and adds value to
its design for the transformation of current financial practices. Such transformational
capabilities of FinTech innovation are disrupting the existing business structures, and
changing how individuals and organizations acquire financial products and services
(Philippon, 2019). Thus, FinTech is increasingly being perceived as an incipient
participatory tool in thefinancial inclusion agenda (Makina, 2019;Zetzscheet al.,2019).
Arner et al. (2018) report that from 2010 to 2017 new financial accounts were opened by 1.2
billion people worldwide for the first time. In spite of this impressive progress in financial
inclusion, the same report also indicated that 1.7 billion people from 16years or older (31%
of adult population in the world) are financially excluded (Arner et al.,2018). Interestingly,
majority of the financially excluded reside in the poorest communities in developing
countries (Demirguc-Kuntet al.,2018). FinTech is perceived to possess the capabilities and
Solomon Odei-Appiah,
Gamel Wiredu and
Joseph Kwame Adjei are all
based at the School of
Technology, Ghana
Institute of Management
and Public Administration
(GIMPA), Accra, Ghana.
Received 17 January 2022
Revised 8 June 2022
Accepted 1 September 2022
DOI 10.1108/DPRG-09-2021-0111 VOL. 24 NO. 5 2022, pp. 435-448, ©Emerald Publishing Limited, ISSN 2398-5038 jDIGITAL POLICY, REGULATION AND GOVERNANCE jPAGE 435
To continue reading
Request your trial