Investigating the adoption of Digital Financial Solutions and their impact on financial inclusion: A Sub- Saharan Africa Perspective

Abstract

This research examines the adoption of Digital Financial Solutions (DFS) and its impact on financial inclusion in Sub-Saharan Africa (SSA). Using an enhanced version of the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) framework, the study explores the intention to use and apply DFS across six countries: Kenya, Nigeria, Ghana, Uganda, Tanzania, and South Africa. It also addresses perceived risks, security concerns, infrastructure limitations, digital literacy, and regulatory hurdles. A quantitative approach was adopted, utilising structured surveys from 586 valid respondents. The analysis included Exploratory Factor Analysis and Multiple Regression Analysis, which revealed that factors such as ease of use, social influence, perceived benefits, service quality, and trust are significant predictors of DFS adoption and utilisation. The study also highlighted variations among countries that reflect the influence of socioeconomic and infrastructural differences. The findings underscore the crucial role of DFS in enhancing financial access, increasing usage frequency, and expanding the range of financial services available to previously excluded groups. This study offers theoretical insights and practical recommendations for policymakers, financial institutions, and technology providers aiming to foster financial inclusion through digital innovation in Sub-Saharan Africa.