The role of Financial Technology on Financial Inclusion and Profitability: The Case of Selected Commercial Banks in Ethiopia

dc.contributor.advisorMengistu Bogale (PhD)
dc.contributor.authorSenait Girma
dc.date.accessioned2026-03-03T05:09:22Z
dc.date.available2026-03-03T05:09:22Z
dc.date.issued2025-09
dc.description.abstractThis study focuses on analyzing the role of financial technology (FinTech) in enhancing financial inclusion and profitability, with a specific emphasis on selected Ethiopian commercial banks. The study also utilized financial data from 2010 to 2023 and adopted an explanatory research design. Primary data were collected from 210 high-level managers across 12 purposively selected banks, supplemented by financial statements (2010–2023). A structured questionnaire was used as the primary research instrument, focusing on three main FinTech dimensions: alternative payment methods (APMs) and automation (Auto) as independent variables, and financial inclusion (FI) as a mediating variable. A total of 210 questionnaires were distributed to the selected banks. To evaluate the relationship between FinTech and profitability (measured by net profit margin), the study employed multivariate regression analysis. Given the quantitative nature of the research, explanatory statistical techniques were applied using SPSS software for data analysis and presentation. The findings indicate that FinTech dimensions—specifically APMs and automation—positively influence financial inclusion. Results revealed that APMs significantly improved Financial inclusion (β = 0.648, p = 0.006), while automation had a moderate effect (β = 0.401, p = 0.05). Financial inclusion mediated 34.5% of profitability variance (R² = 0.345), underscoring FinTech’s role in operational efficiency and inclusive growth. The findings advocate for strategic investments in APMs and automation to bolster bank performance in emerging markets
dc.identifier.urihttps://etd.aau.edu.et/handle/123456789/7746
dc.language.isoen_US
dc.publisherAddis Ababa University
dc.subjectFinTech
dc.subjectAlternative payment methods
dc.subjectAutomation
dc.subjectFinancial inclusion
dc.subjectprofitability
dc.subjectcommercial banks
dc.titleThe role of Financial Technology on Financial Inclusion and Profitability: The Case of Selected Commercial Banks in Ethiopia
dc.typeThesis

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