Electronic Theses and Dissertations (Masters/MBA)

Permanent URI for this collectionhttps://hdl.handle.net/10539/37942

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Subject: search.filters.subject.Financial inclusion

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Now showing 1 - 10 of 12
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    The perceived influence of digital banking on the financial wellness of the South African middle-class
    (University of the Witwatersrand, Johannesburg, 2024) Mabasa, Tiyiselani Innocent; Anning-Dorson, Thomas
    This study explores the impact of digital banking on the financial wellness of the South African middle class. Using online questionnaires, quantitative research methods are employed to gather data on digital banking adoption, perceived financial wellness, easy access to credit, and prior exposure to digital marketing strategies among middle- class individuals. Data analysis encompasses the use of descriptive statistics, correlation analysis, and regression analysis to examine the relationships between variables and draw relevant conclusions. This study aims to enhance comprehension of the perceived impact of digital banking on the financial wellness of middle-class South Africans by addressing specific research goals. The study found that autonomous and controlled motivation had a positive impact on the individual's financial wellness; it further highlighted that personalised credit offers contributed positively towards their financial wellness, despite the fact that convenient access to credit is a significant factor in the adoption of digital banking but not the sole determinant factor.
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    Disruptive technologies for promoting financial inclusion in South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Aziz, Mahomed Asif; Dladla, Pholile
    This research study seeks to examine the dynamics of financial inclusion in South Africa via the prism of disruptive technologies, to detect stakeholder stances and suggest strategies for inclusive growth. Following an interpretive philosophy, the study used an inductive technique, conducting semi-structured interviews with 14 stakeholders from diverse industries. Thematic analysis was used to investigate the qualitative data, which yielded substantial results. The study's key results shed light on critical challenges. Stakeholders underlined the significance of inclusive policies targeted to different socioeconomic groups, as well as regulatory frameworks that encourage innovation while addressing economic concerns. Discussions focused on how economic factors like high interest rates and taxation affect entrepreneurship and technological innovation. Sustainable development became a key issue, emphasising the link between technical breakthroughs and global sustainability objectives. Furthermore, the study emphasises the government's responsibility to promote innovation and modernisation, pushing for strategic planning and more efficient bureaucratic processes. The implementation of Shariah law principles was noted as a noteworthy discovery, providing an opportunity to improve financial participation while lowering the dangers of indebtedness. Furthermore, the study emphasises the importance of talent transfer and cooperation as long-term growth drivers, as well as the benefits of information exchange and capacity building. These discoveries have far-reaching and complex ramifications. The study gives vital insights into consumer preferences, allowing banks to adjust their services to meet a wide range of demands. Policymakers might use the data to rethink existing restrictions and create initiatives that encourage innovation and financial inclusion. Socially, companies and schools may use the findings to promote economic empowerment and digital literacy. Overall, the research makes specific suggestions to South African stakeholders on how to create fair growth, boost innovation, and move forward with socioeconomic development goals
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    Examining the influence of digital payment adoption on the digital divide in Kagiso township, South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Mokgwatsane, Malengolo; Godspower-Akpomiemie, Euphemia
    Digital payment systems have become increasingly popular and a vehicle for financial inclusion and access to financial services. However, as technological advancements progress, there remains a population segment that is left behind in terms of adoption and access. Digital payment systems are generally not adopted by township residents in South Africa. This is due to the uneven telecommunications infrastructure in South Africa and its limited availability in the townships. This study investigates the influence of tap-to-pay digital payments on the existing digital divide in Kagiso township and the factors that impact adoption and usage of this technology. This study adopted a qualitative research methodology that involved conducting face-to-face interviews with 12 respondents from Kagiso township. The respondents’ feedback was consolidated and analysed to uncover key findings. The findings revealed the presence of a digital divide in access and availability within Kagiso township, characterised by challenges stemming from poor infrastructure and limited access to technology, worsened by an uneven distribution of ICT. Furthermore, this study revealed lack of awareness and understanding of tap-to-pay, safety and security, unemployment and socioeconomic challenges as significant barriers to the adoption and usage of tap-to-pay payment systems in the township. Therefore, it is advisable for the South African government to increase investment in infrastructural upgrades to improve the accessibility and availability of digital technologies in the townships while also collaborating with the private sector to support initiatives aimed at addressing the digital divide in the townships. The collaboration with the private sector, particularly the telecommunications companies is crucial in driving these efforts. By leveraging market opportunities, telecommunication companies can implement strategies that accelerate the adoption of new technologies. One such strategy is investment in fiber optic networks to provide high-speed internet access in townships.
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    Factors influencing the adoption of financial technology solutions in South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Mngxadi, Mpilo
    Consumer adoption of digital financial technology (FinTech) is driving a wave of digital transformation within the South African financial industry. This study explores how both consumers and financial institutions are adapting in this market. This study examines the evolving consumer behaviours surrounding mobile FinTech products and the corresponding changes occurring within the financial sector in response to these new demands. This comprehensive approach ensures a nuanced understanding of the factors driving FinTech adoption in the study. Key facilitators included positive attitudes, strong behavioural intentions, trust and the perceived usefulness of digital financial technology. Effort expectancy and performance expectancy emerged as the two significant barriers. Additionally, the study explored the digitally transforming behaviours within the South African market, revealing that these behaviours cannot be generalised across the entire population group due to variations based on income levels and digital literacy. The South African market, often overshadowed by research on underbanked populations, presents a unique opportunity for FinTech adoption. This study sheds light on the characteristics of this diverse customer segment. To accelerate digital financial technology adoption within this market, strategic collaboration among FinTech companies, incumbent banks, and government stakeholders is crucial.
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    Factors influencing Fintech adoption among the unbanked in South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Matsimbi, Kagiso Hetisani; Totowa, Jacques
    Financial technology (Fintech) has emerged as a transformative force in the global financial landscape, promising increased accessibility and efficiency in financial services. However, its adoption among unbanked populations, particularly in South Africa, remains limited, posing a significant barrier to financial inclusion and economic empowerment. This study explores the factors influencing the adoption of Fintech among unbanked South Africans, with a focus on accessibility, trust, technological literacy, user interfaces and socio-economic barriers. Through an exploratory approach, in the form of semi- structured interviews, data was collected from market research professionals with extensive research experience in the financial services and Fintech industry. The findings reveal that while there is a growing awareness of Fintech services, several key factors hinder widespread adoption, including limited digital literacy, concerns over security and trust, and challenges related to accessibility and affordability. Additionally, socio- economic factors such as income levels, infrastructure and geographic location play a significant role in shaping adoption behaviours. Based on these findings, recommendations are proposed to enhance digital literacy, increase accessibility, build trust in Fintech services, simplify user experience, tailor financial products, and foster community engagement to encourage adoption. Addressing these factors is essential for unlocking the potential of Fintech to drive financial inclusion and empowerment among unbanked South Africans, ultimately contributing to broader socio-economic development goals.
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    The use of mobile money as driver for financial inclusion
    (University of the Witwatersrand, Johannesburg, 2024) Simelane, Syilina; Mondi, Lumkile
    Technology has contributed greatly to innovation. Since the advent of the internet and computers have increased the pace of innovation. Innovation has been moving at light speed. However, a large percentage of the population have not been able to enjoy the benefits of this growth in technology. The one invention though that has permeated all corners of the globe is the cellular phone (mobile phone). Cell phones have become ubiquitous. Their main function is to keep people connected. The cell phones’ other functionalities and compactness adds to the allure and necessity of the cell phone. Technology has also created an expectation in consumers. The expectation that they will receive products that will perfectly satisfy their needs. As noted in my research, I will review the methodology, setup, considerations and past successes of other countries in providing solutions that fit the needs of consumers of mobile banking. In countries such as India, Kenya and China. The purpose of this study is to determine how Mobile Network Operators can play an integral in the financial inclusion of low-income individuals through Mobile money applications. At current the availability, use and adoption of mobile money applications is low. This is due to several impediments that exist to low-income users. Some being awareness of the application, understanding on how to use the application and the benefits they may gain. The study reviews these impediments and offers suggestions on how to overcome these impediments. Mobile Network Operators (MNO) help improve access to mobile phones and in turn increase access to mobile banking applications. This research shows that increased use of mobile money application improves lives of those using these applications. It increases access to finance, creating more revenue for businesses using the application and Mobile Network Operators, that in turn increases the overall Gross Domestic Product (GDP). Through this research we find that Mobile Network Operators have a role to play in financial inclusion, however it will require a strategy that focuses on educating low- income individuals on available applications as well as creating solutions that are tailored for the needs of low-income individuals
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    An evaluation of the effectiveness of financial inclusion programs in the South African financial sector
    (University of the Witwatersrand, Johannesburg, 2021) Korte, Maude; Pamacheche, Rukudzo
    Empirical literature argues that FI has a positive bearing on socio-economic aspects for developing economies, evidence of this is found in Sarma and Paris (2011), Ramakrishna and Trivedi (2018) and World Bank (2020). Accepting the positive impact, the correlation between FI and expected social benefits one needs to understand in the context of the society in which it exists for benefit maximisation. Amidži et al.(2014) explain that understanding the correlation in its societal context is critically important, as these supply and demand-side factors have significant impacts on FI's efficacy. The SA FI tactics to date have resulted in 80% of the population having access to bank accounts, however, dormancy on these accounts are estimated to be as high as 30% - 40% (FinMark, 2019). The central thought around a bank account led theory is that once a consumer has access to a bank account, the consumer is likely to use additional products and services (called secondary products in this context). How much of these secondary products and services have been taken up under the current tactic is unclear, as results are not published regularly. What is clear is that the shape of the FI landscape for SA has changed from many consumers being involuntary excluded (National Treasury Report, 2015) to many consumers volunteering exclusion. This can be seen in the dormancy ratio, a definitive indication of voluntary exclusion. Despite the landscape changes and the reported mismatch in supply and demand, SA FI strategy has remained unchanged since 2002. This paper interrogates the viability of the current FI strategy and argues for a new perspective of FI; it finds that SA will need to pivot from a supply-led focussed plan to a demand-led focused plan achieve the last mile of FI.
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    Perceived impact of fintech on financial inclusion in South Africa
    (University of the Witwatersrand, Johannesburg, 2021) Runyowa, Leonard; Chakamera, Chengete
    Globally, financial inclusion has been recognised as a critical pillar to alleviate poverty, reduce inequality, and increase economic growth. As an emerging economy, South Africa is still facing challenges of poverty and inequality and is ranked one of the unequal countries in the world (World Bank, 2013). Financial inclusion by leveraging fintech has been identified as a critical enabler for delivering affordable financial services to under-served population segments (National Treasury, 2020). The primary purpose of this study is to determine the perceived impact of financial technology on financial inclusion in the South African context. The study's specific objectives are (i) to determine if the adoption and usage of fintech influences financial inclusion in South Africa; (ii) to determine if fintech can influence financial inclusion barriers and (iii) to determine if awareness of the benefits and risks associated with fintech influence the adoption and usageof fintech. The study used a quantitative research strategy with a cross-sectional or survey design. An online self-completion questionnaire was used as a data collection instrument and non-probability sampling with convenience sampling method to select the respondents. One hundred twenty-five respondents completed the online survey, and data were analysed using descriptive statistics, correlation, and regression analysis. The findings indicate that fintech adoption and usage has a positive influence on financial inclusion. The study also found that fintech influences financial inclusion barriers like distance to the nearest branch, transport costs, transaction costs, and lack of proper documentation. Consumers who use fintech products and services no longer perceive these barriers as a hindrance to financial access. Lastly, it was also found that awareness of the benefits associated with fintech influences fintech adoption and usage. In contrast, awareness of the risks associated with fintech does not influence fintech adoption and use among the respondents. This study will contribute to the fewer studies that have looked at the impact of fintech on financial inclusion in the South African context. The study can help the government and financial institutions understand the impact of fintech on financial inclusion and improve the current strategies implemented to increase financial inclusion in South Africa
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    Digitalization of banking services and financial inclusion in Botswana
    (University of the Witwatersrand, Johannesburg, 2023) Mpowe, Emmanuel; Odei- Mensah, Jones
    The purpose of the study was to evaluate the level of digitalization of banking or financial services in Botswana. The study also sought to understand the association between digitalization and financial inclusion Furthermore, the research also studied the association of macro level determinants of financial inclusion such as GDP per capita and employment to adult population with financial inclusion. The study used secondary data collected mainly from the reserve bank of Botswana’s reports published on their website, Central Statistics Office and annual report of a selected commercial banks. Annual spending on ICT by commercial banks was used as a proxy for digitalization. The study used time series data from 2006 to 2020. Regression and correlation techniques were performed on the selected variables with financial inclusion as a dependent variable. The result from the analysis suggested that there is a significant positive association between ICT spend or digitalization of banking services and financial inclusion. This findings were in support of the hypothesis formulated from the existing literature which also suggested that digital financial services are more likely to increase the level of financial inclusion. The study also evaluated the impact of GDP and employment rate on financial inclusion. The findings suggested that both variables have a positive correlation with financial inclusion.
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    Financial inclusion through digital payments in South Africa
    (University of the Witwatersrand, Johannesburg, 2023) Tshishonga, Aluwani Peter; Ndayizigamiye, Patrick
    One of the enablers of financial inclusion is access to payment services and digital payments have been proven in other countries to be one of the enablers of financial inclusion. Cash payments are prevalent in many communities in the country However, those using cash are not included in formal financial services and are not able to get services such as credit, insurance and other financial services products. This study sought to identify the challenges that should be addressed in order to use digital payments as enablers of financial inclusion in South Africa. It also sought to identify the solutions or frameworks that could be used to address these challenges. The Actor-Network Theory was used to identify the actors in the digital payments ecosystem and the challenges they face. The research findings show that the South African economy can be referred to as a “dual economy”. The rural economy relies heavily on cash while the urban economy uses formal banking services, which include digital payments. Amongst the challenges affecting the adoption of digital payments are the immediacy of cash and the perceived low cost of cash, the low acceptance of digital payments by merchants’ infrastructure and, in some instances, those who are willing to pay using digital means are charged more to cover the costs merchants incur when accepting digital payments. A further challenge is the rate of digital literacy in the country and the lack of trust in the digital payments ecosystem. The cost of date in South Africa limits access to internet connectivity which is required to make digital payments. There is a lack of interoperable solutions in the market whereby customers can move from one channel to another with ease, for example, by using a mobile money wallet in the same way a bank account can be used. Lastly, the lack of privacy in transactions was also identified as a challenge. While there may be several solutions for these challenges, this research established the following potential solution, namely, the creation of a new industry body that includes all actors in the digital payments ecosystem. Mobile network operators, financial technology companies and retailers, amongst others, need to participate in this new industry body in order to help address the identified challenges. The new industry body must also assume the task of increasing digital literacy in the country and improving the infrastructure required to support digital payment