THE ROLE OF FINANCIAL CAPABILITY AND REGULATION ON THE FINTECH- FINANCIAL INCLUSION-FINANCIAL STABILITY NEXUS IN SUB-SAHARAN AFRICA

Authors

  • Tough Chinoda Postdoctoral Research Fellow, University of Fort Hare, Department of Economics- Private Bag X9083. East London, South Africa
  • Forget Mingiri Kapingura Associate Professor, University of Fort Hare, Department of Economics. Private Bag X9083. East London, South Africa

Keywords:

FinTech, Financial Stability, Financial Inclusion, Financial Capability, Regulation

Abstract

In the banking sector, financial technology (FinTech) has become a transformative force, reshaping the delivery and utilisation of financial services. This study applied the System Generalised Method of Moments (GMM) to examine how regulation and financial capability influence the relationship between financial stability, financial inclusion, and FinTech in Sub-Saharan Africa over the periods 2011, 2014, 2017, and 2021. The results revealed that although FinTech negatively affects financial stability, financial capability helps to counteract this adverse impact. Additionally, the research demonstrated that financial inclusion enhances financial stability, with regulation playing a moderating role. From a policy standpoint, it is crucial for regulators to establish frameworks that balance the promotion of innovation with the preservation of financial stability. To accomplish this, FinTech firms must navigate the intricate regulatory landscape governing financial technology, ensuring that advancements in the sector do not compromise digital security.

Downloads

Published

2024-10-30

Issue

Vol. 16 No. 3 (2024): International Journal of Economics and Financial Studies (IJEFS)

Section

Original Article