ABSTRACT
There is an increased growth of the use digital financial services in the world. Many banks, financial institutions, savings and loans companies are establishing and implementing the use of these services to bridge financial inclusion.
A study was conducted at Zenith Bank Ghana Limited to see the benefit of digital financial services among their clients and its contribution to financial inclusion. This study was done to determine the relationship between financial inclusion and digital financial services. It sought to quantitatively test the notion that mobile money, the use of ATM‟s and other E-services in most cases leads to financial inclusion.
The study used primary data through the use of questionnaires. Using Regression analysis, the study determined how variables such as ATM‟s and E-banking services aside MOMO also affected financial inclusion.
The findings of the study showed that there was a positive relationship between digital financial services (mobile money, ATM‟s, E-banking services) and financial inclusion.
One suggestion for further studies recommends that banks should pursue more synergistic operating models that facilitate information and experience sharing in order to develop a wider range of bank services. A major limitation however was time constraint used to conduct this research.
CHAPTER ONE
INTRODUCTION
This chapter outlines the background of the study, the problem statement and the objectives of the study, the research questions and the significance of the study. It goes on to discuss the scope, limitations and chapter organization of the study.
Background to the Study
It is expedient to note that theories and empirical evidence have inspired the notion that financial inclusion promotes development and economic growth. Different works and Scholarly literature have proved that financial inclusion has positively influenced countries that have embraced it.
Mbutor and Uba (2013) analyzed budgetary consideration as systems went for expanding the quantity of individuals with records in banks and other formal money related establishments investment funds, current and credit. It likewise advances the utilization of formal installment media, including checks, ATM cards, web installments, versatile installments and others. Furthermore, financial inclusion was referred to as a banking sector that allows access to their use by firms and households and also gives access to banking services. (Beck et al. 2006). Claessesns (2006) defined the dimensions to „Access‟ in banking services which includes quality of financial services offered, availability of financial service and type and cost of access and range. The study explained that „Access‟ is not the same as use since “economic agents might
decide not to use accessible financial service, either for socio-economic reasons, or because opportunity costs are too high” (Beck et al., 2006).
The definition of financial inclusion covers the formal financial system; hence it may be expected to contribute to the development of a financial system. This is achieved by ensuring the ease of access, availability, and usage of formal financial system for all members of an economy (Shankar, 2013; Sarma, 2008). According to Visco (2007) “financial inclusion is a form of financial deepening as a result of its role in increasing the size of financial system, growing diversification of firms‟ and households‟ portfolios and developing the financial markets”.
Financial inclusion has numerous benefits for State development. Studies have revealed that female empowerment, general savings, consumption and productive investment are experience by communities with availability of savings instrument communities (Aportela, 1998; Ashraf, Karlan, & Yin, 2010). It also helps in poverty reduction, ensuring income equity and enhanced private investment (Allen, Demirgüç-Kunt, Klapper, & Martinez Peria, 2012; Beck, Demirguc- Kunt, &Peria, 2007). “Financial inclusion improves the fascination of remittances and eases the relocation of funds from overseas” (Demirgüç-Kunt, Córdova, Pería, & Woodruff, 2011).
Again, financial inclusion also enables effective distribution of productive resources, implicitly advances the daily running of finances and guarantees a complete financial structure that can aid diminish the progress of unauthorised avenues of accessing credit which time and again have had a tendency to be manipulation (Sarma, 2012).
Over the years, there has been widespread adoption of Technology in daily life activities. . This has prompted the developing of various frameworks utilized for paying and getting of money and non-money things in Ghana. The utilization of cell phones in executing business in Ghana and
the world can’t be overemphasized. Because of the ever progressively far reaching of cell phones among shoppers, generally in developing markets, versatile cash utilization has turned into an extraordinary wonder. Orozco et.al (2007) place that the presentation of prepaid cards and the decrease in cost of cell phone gadgets have made it more affordable and simpler for individuals to possess and work cell phones. The various open doors that accompany the utilization of cell phones separated from voice calls and messages have been investigated, thusly.
