Faculty of Commerce, Law and Management (ETDs)

Permanent URI for this communityhttps://hdl.handle.net/10539/37778

Browse

Subject: search.filters.subject.Financial inclusion

Search Results

Now showing 1 - 10 of 16
  • Thumbnail Image
    Item
    Financial inclusion in South Africa: An analysis of the financial sector regulatory framework and proposals for reform
    (2018-09) Duma, Amanda; Kawadza, Herbert
    Abstract Not Available.
  • Thumbnail Image
    Item
    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.
  • Thumbnail Image
    Item
    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
  • Thumbnail Image
    Item
    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.
  • Thumbnail Image
    Item
    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.
  • Thumbnail Image
    Item
    Financial inclusion, institutional quality, and poverty reduction in Africa
    (University of the Witwatersrand, Johannesburg, 2023) Nsiah, Anthony Yaw; Tweneboah, George
    Financial inclusion is seen as an enabler to growth in an economy, as such enhance poverty reduction, especially in developing regions like Africa. Poverty levels in Africa are still very high, especially with the advent of the Covid-19 pandemic, despite efforts of governments and development partners to address it. The extant literature has provided some information regarding the financial inclusion and poverty reduction nexus in the continent and elsewhere. However, the exact threshold level of inclusion at which poverty could be altered has not been thoroughly explored. Also, the critical role institutions play in transferring the benefits of financial services to households and firms towards poverty reduction has not been extensively interrogated. This thesis therefore consists of three separate empirical studies which all intend to fill the knowledge gap, using advanced econometric methodologies. For the first essay, we examined the determinants of financial inclusion in Africa, considering demand, supply as well as infrastructure side factors. Despite the importance of financial inclusion, many factors play a role in one’s decision to get involved in the financial sector. Using the GMM technique, the study revealed that GNI per capita (demand-side factor), Domestic credit to private sector (Supply-side factor) and institution quality (infrastructure-side factor) were significantly identified to be determinants of financial inclusion in Africa. It was further revealed that GNI per capita, Money supply and Institutional quality contribute to the minimization of barriers to financial inclusion. The second essay sought to estimate the threshold level at which financial inclusion, aided by strong institutions, will lead to poverty reduction in Africa. Financial inclusion has been identified as an important concept in fighting poverty due to its ability to increase income level of households. Using the Hansen’s threshold estimation method, the study found double threshold values at which financial inclusion would increase household consumption expenditure, leading to poverty reduction. The study also established a certain threshold level beyond which, financial barriers will have a negative iv impact on consumption which has the tendency to scare households from participating in the financial sector. The results further indicated that dependency ratio, gross national income, interest rate, inflation, education, and government expenditure contribute significantly to reducing barriers to reduce poverty. Institutional quality was also found to significantly moderate the financial inclusion and poverty reduction relationship. The last but not the least essay investigated the nature of the relationship between financial inclusion, financial stability, and poverty reduction in Africa. Financial inclusion plays an important role in enhancing stability of the financial system. It has however been argued that some level of financial inclusion has the tendency to destabilize the financial system, thwarting poverty reduction efforts. Using the panel Autoregressive Distributive Lag (ARDL) model, the study found that financial inclusion is positively related to financial stability in both short and long-run, with education, GNI per capita and domestic credit to private sector positively related to financial stability and trade openness negatively related to same, in the long-run. The study further established that financial stability is positively related to consumption as such leads to poverty reduction with trade openness, government expenditure, GNI per capita, education, domestic credit to private sector and institutional quality been positively related to household consumption, as such its effects lead to poverty reduction. This indicates that financial stability plays a complementary role in the financial inclusion drive to fight poverty in Africa. It is recommended that development partners, central banks and governments in the region should consciously implement policies that are aimed at promoting financial inclusion through the strengthening of institution, due to its ability to end poverty as well as take pragmatic measures to minimize barriers to financial inclusion. Despite the financial inclusion drive, regulations must not be taking for granted in order not to compromise stability of the financial system for the joint benefit in the fight against poverty as well as ensure financial stability
  • Thumbnail Image
    Item
    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.
  • Thumbnail Image
    Item
    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
  • Thumbnail Image
    Item
    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.
  • Thumbnail Image
    Item
    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