IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 6 NO. 4 2020

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The Impact of Innovation on Financial Inclusion Case of the Financial Sector of Cameroon

Emmanuel T .S. Doh

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Abstract

In third world countries, more than half of the population do not have an account with a financial institution and the situation is particularly acute in Sub-Saharan Africa. Financial inclusion is a key component of an all-inclusive social, political and economic development in any country since exclusion from the formal financial system has been identified as one of the major bottlenecks to a world without poverty. Consequently, the importance of an all-inclusive financial system is widely recognized in the policy circle and has become a key consideration in financial policy formulation in many countries including Cameroon. The objective of this research was to establish the effect of financial innovation on financial inclusion in Cameroon. The study adopted a descriptive statistic and used secondary data from the BICEC of Cameroon. The data on the number of deposit accounts, number of automated teller machines, number of registered bank agents, number of mobile money transactions and number of licensed deposits taking microfinance institutions was collected for the period between 2010 to 2019 quarterly. The data collected was analysed using descriptive and inferential statistics. Descriptive statistics included a trend analysis of the variables over the period of the study. Inferential statistics used include Pearson correlation and regression analysis. Regression results showed that the number of deposits taking microfinance institutions and the number of mobile money transactions had a positive effect on financial inclusion while agency banking had a negative effect on financial inclusion. Overall, the regression model showed that financial innovation was a good predictor of financial inclusion. The study concluded that financial innovation has a significant effect on the level of financial inclusion

Innovation, Financial Inclusion, financial innovation.

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