“The Effect of Financial Technology (Fintech) on Financial Inclusion: A Case Study of Ethiotelecom’s Telebirr
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Date
2025-09
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Addis Ababa University
Abstract
The study, titled “The Effect of Financial Technology (FinTech) on Financial Inclusion: A Case Study of EthioTelecom’s Telebirr,” by Beza Mekonnen, investigates the effect of financial technology,Telebirr on financial inclusion in Addis Ababa Ethiopia. It highlights although mobile money platforms have expanded rapidly, limited empirical evidence exists regarding their long-term contribution to financial well-being, including savings, investment, and economic empowerment. The study examines how FinTech dimensions accessibility, service diversity, and cost & reliability impact financial inclusion outcomes, with digital financial literacy assessed as a mediating factor. An explanatory research design was employed using a structured, close-ended and a five-point Likert scale questionnaire. Primary data were collected from 385 Telebirr users in Addis Ababa through purposive sampling, based on Cochran’s formula. Secondary sources, including policy reports and academic and scholarly studies, were used to contextualize findings. Thematic interpretation was applied to selected indicators to enrich quantitative insights. Instrument validity was ensured through content, construct, and criterion validity techniques. Data were analyzed using STATA/IC 15.1 employing descriptive statistics, correlation, and multiple linear regression analysis. Findings show that Telebirr has improved access to basic financial services such as digital transfers and bill payments but remains limited in supporting deeper financial engagement like savings and credit usage. Major challenges include low digital financial literacy, insufficient user awareness, and inconsistent platform reliability. The study provides empirical evidence relevant to digital finance adoption in low-income settings and informs future FinTech strategies and inclusive finance policies.
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Keywords
Digital Financial Literacy, Financial Inclusion, FinTech, Telebirr