FINTECH DISRUPTION AND FINANCIAL INCLUSION IN SUB-SAHARAN AFRICA DATA-DRIVEN ANALYSIS

Abstract

This study examined the impact of fintech disruption on financial inclusion in Sub-Saharan Africa using a
quantitative panel data analysis spanning 2015–2023. Employing pooled OLS, fixed effects, and random effects
regression models, the research analyses secondary data from the World Bank Global Findex, IMF Fintech Index,
GSMA Mobile Money Metrics, and other reputable sources. Key findings reveal a statistically significant positive
relationship between fintech startups and financial inclusion (coefficient = 0.287, p = 0.0021 in the random effects
model), suggesting that innovative fintech solutions contribute meaningfully to expanding financial access.
However, mobile money transaction volumes exhibit an insignificant negative association (coefficient = -0.110,
p = 0.389), challenging conventional assumptions about its transformative role. Fintech investments show no
significant impact (coefficient = 0.006, p = 0.952), indicating potential misalignment between capital flows and
inclusion objectives. Diagnostic tests confirm model validity, with no autocorrelation (p = 0.2319),
heteroscedasticity (p = 0.5600), or non-normality (p = 0.9408) detected. The Hausman test (χ² = 6.109, p =
0.1911) supports the use of random effects, accounting for unobserved country-level heterogeneity. The study
underscores the importance of country-specific regulatory and infrastructural conditions in mediating fintech’s
inclusion effects. Policy recommendations emphasize fostering inclusive fintech innovation, strengthening
enabling environments, and promoting cross-sector collaboration to enhance financial access across SubSaharan Africa.