The Role of Fintechs in promoting financial inclusion in Bindura, Zimbabwe

Abstract

This study investigates the role of financial technologies (fintechs) in promoting financial inclusion in Bindura, Zimbabwe, with specific reference to the way digital financial services have increased formal financial inclusion for persons and small business owners. The research aimed to determine to what extent fintechs have increased access to financial services, to how this access is influenced in practice, to the extent by affordability and service quality, and the welfare outcomes brought by fintech adoption. It utilized a quantitative research method to develop a descriptive and explanatory case study survey based on 422 respondents from a multistage stratified and systematic sampling design. The results indicate that the usage of fintech is high in Bindura, dominated using mobile money as the most prevalent platform, and a substantial number of respondents regularly use fintech for payments, remittances, and savings. The research also suggests that although fintechs have enhanced financial inclusion, access to and capacity building around such infrastructure as robust network connectivity and electricity, and affordability of financial services persist as major determinants for realizing financial inclusion. Though fintech implementation did result in positive welfare outcomes such as improved household financial management, results suggest that that is still not true for inclusion – particularly in terms of credit access and longer-term financial independence. The study concludes that fintechs are important enablers of financial inclusion in Bindura, yet more policy and institutional support is needed to strengthen infrastructure and lower transaction costs; then the quality of financial services to promote sustainable socio-economic development.