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Information Effect of Fintech and Digital Finance on Financial Inclusion during the COVID-19 Pandemic: Global Evidence

Author

Listed:
  • Peterson K. Ozili

    (Monetary Policy Department, Central Bank of Nigeria, Abuja P.M.B. 0187, Nigeria)

  • David Mhlanga

    (School of Public Management, Governance and Public Policy, University of Johannesburg, Johannesburg P.O. Box 524, South Africa)

  • Rym Ammar

    (Esprit School of Business, Tunis 2083, Tunisia)

  • Marwa Fersi

    (Department of Applied Economics, University of Sfax, Sfax 3038, Tunisia)

Abstract

The lockdown restrictions during the COVID-19 pandemic led to increased interest in Fintech and digital finance solutions, and it gave people an incentive to join the formal financial sector by owning a formal account. People became interested in information about Fintech and digital finance solutions, and it led them to search the Internet to obtain information about Fintech, digital finance, and financial inclusion. In this study, we investigate whether interest in Internet information about Fintech and digital finance led to interest in Internet information about financial inclusion during the COVID-19 pandemic. Using global data that capture interest over time, we found that interest in information about Fintech was greater in developed countries while interest in information about financial inclusion was greater in developing countries during the pandemic. Interest in Fintech information was strongly correlated with interest in financial inclusion information during the pandemic. Interest in Fintech information had a significant positive effect on interest in financial inclusion information during the pandemic. There is a unidirectional causality between interest in Fintech information and interest in financial inclusion information during the pandemic. The implication of these findings is that interest in Fintech information is an important determinant of interest in financial inclusion information.

Suggested Citation

  • Peterson K. Ozili & David Mhlanga & Rym Ammar & Marwa Fersi, 2024. "Information Effect of Fintech and Digital Finance on Financial Inclusion during the COVID-19 Pandemic: Global Evidence," FinTech, MDPI, vol. 3(1), pages 1-17, January.
    • Handle: RePEc:gam:jfinte:v:3:y:2024:i:1:p:5-82:d:1323758
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    References listed on IDEAS

    as
    1. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    2. Ozili, Peterson K, 2020. "Contesting digital finance for the poor," MPRA Paper 101812, University Library of Munich, Germany.
    3. Oleksandr Dluhopolskyi & Olena Pakhnenko & Serhiy Lyeonov & Andrii Semenog & Nadiia Artyukhova & Marta Cholewa-Wiktor & Winczysław Jastrzębski, 2023. "Digital Financial Inclusion: COVID-19 Impacts and Opportunities," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    4. Ivanka Vasenska & Preslav Dimitrov & Blagovesta Koyundzhiyska-Davidkova & Vladislav Krastev & Pavol Durana & Ioulia Poulaki, 2021. "Financial Transactions Using FINTECH during the Covid-19 Crisis in Bulgaria," Risks, MDPI, vol. 9(3), pages 1-28, March.
    5. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
    6. Thomas Philippon, 2019. "On Fintech and Financial Inclusion," NBER Working Papers 26330, National Bureau of Economic Research, Inc.
    7. Nader Alber & Mohamed Dabour, 2020. "The Dynamic Relationship between FinTech and Social Distancing under COVID-19 Pandemic: Digital Payments Evidence," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(11), pages 109-109, November.
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