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Financial Inclusion and Digital Financial Services: Empirical evidence from Ghana

Author

Listed:
  • Agyekum, Francis
  • Locke, Stuart
  • Hewa-Wellalage, Nirosha

Abstract

The paper examines the relationship between increasing accessibility to digital financial services (DFS) and financial inclusion in lower income countries (LICs). Banks and non-bank organisations use DFS and the analysis indicates non-bank-based DFS emerges as the most efficient means of delivering cost effective financial services to the previously unbanked. Mobile cellular penetration and internet usage are mutually inclusive means through which digital financial services foster financial inclusion. Analysis of data for Ghana, as a case study, uses ordinary least squares and logistic regression models. The results in Difference-In-Difference method confirms the positive significant trend of mobile money usage and negative trend of bank-based DFS facilities over the period 2011-2014 in Ghana. Unambiguous policy ramifications are emphasised, paying attention to technological deepening stimulate positive outcomes of a broader and inclusive financial system.

Suggested Citation

  • Agyekum, Francis & Locke, Stuart & Hewa-Wellalage, Nirosha, 2016. "Financial Inclusion and Digital Financial Services: Empirical evidence from Ghana," MPRA Paper 82885, University Library of Munich, Germany, revised 15 May 2017.
    • Handle: RePEc:pra:mprapa:82885
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    References listed on IDEAS

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    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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