Determinants of Financial Inclusion in an Era of Technology: In the Case of Commercial Banks in Ethiopia
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Date
2024-01-09
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AAU
Abstract
Financial inclusion refers to a manner of providing financial institutes and smooth financial
transaction mechanisms in an easy way. In addition, to exchange goods and services using that
easy way of accessibility, availability, or proper implementation of the system for the people
living in an economy. Financial inclusion enables the economy to grow sustainably by improving
social well-being. In this era, technological innovation is one of the key successes for businesses
to strengthen the maturity life of product life cycle, including the financial industry. Nowadays a
need for speed in the delivery of products or services included in financial services. The role of
financial inclusion in the economic and financial discourse has gained a lot of interest among
both academia and practitioners. By what method could address financial inclusion becomes an
interesting subject on the agendas of researchers, policymakers, regulators, and financial
institutions. This is fundamental in developing countries like Ethiopia's marketplaces, where
banking accessibilities and financial inclusions are comparatively low. The objective of this
study is to investigate the determinants of financial inclusion in the era of technology in
Ethiopian commercial banks. The type of research applied in this study is explanatory or causal.
After a thorough review of previous empirical studies and current observations, a research
questionnaire is developed as a means of data collection. Data collected from a total of 334
actual respondents from eighteen banks were used. The responses were evaluated with
descriptive statistics and binary logistic regression analysis using SPSS version 25 software. The
study revealed the variable electronic devices, occupation, education, and income are positive
and significant factors in financial inclusion, whereas documentation has a negative and
significant effect. As a result, the study recommended that policymakers, governments, financial
institutions, and development organizations take into account the aforementioned financial
inclusion elements in their attempts to address the problem of financial exclusion and combat
poverty among certain segments of the population