Dynamics of Digital Finance and Financial Inclusion Nexus in Sub-Saharan Africa

With the revolution in the financial technology space occasioned by competition among financial market intermediaries, there is no doubt that more unbanked and under-banked citizens will be captured into the financial net of the economy. This study examined the dynamic relationship between digital finance and financial inclusion in 27 sub-Saharan African countries. Granger Error Correction Method (ECM) with General Methods of Moments (GMM) of Arellanon and Bond (1991) were used to analyze the short panel data. The study found that a positive long-run relationship exists between digital finance and financial inclusion. It therefore recommends amongst others that monetary authorities of emerging and developing economies in sub-Sahara African countries should embrace digital financial technologies by encouraging commercial banks to install more ATMs and discourage acceptance of cash payment and withdrawals within established thresholds across bank counters in their respective countrie