Impact of Fintech Strategies on Financial Inclusion in Kenya

Abstract

FinTechs utilize advanced and cutting-edge technological methods to create and deliver financial products and services. Fintechs are firms that advance financial services and products by use of intensive information technology. The general objective of this study was to determine the impact of fintech strategies on financial inlcusion in Kenya. The research questions below guided this study; To examine the impact of fintech strategies on fintech savings, fintech credit, fintech regulatory and fintech transactions on financial inclusion in Kenya. A descriptive research design was adopted. The main approach for data collection was secondary data and the examination conducted spanned an extensive period from 2018 to 2022, providing a broader timespan for comprehensive analysis. This prolonged timeframe was considered sufficient to yield conclusive and reliable results. Data obtained was analyzed for descriptive statistics using SPSS and Microsoft Excel. Through the analysis of the data, crucial insights into the impact of various fintech strategies on financial inclusion were revealed. The descriptive statistics results were presented in figures and tables to clearly outline frequencies, percentages and central tendencies such as mean and standard deviation while inferential statistics for the study included simple Regressionand pearson correlation analysis. The study explored the impact of fintech strategies on financial inclusion, focusing on Fintech Savings, Fintech Credit, Fintech Regulatory, and Fintech Transactions. When all strategies remained the same, financial inclusion fell by 0.7996 units, according to the study's analysis of the effect of fintech strategies on financial inclusion. Although there was a favorable connection between them, Fintech Savings had little overall influence. Fintech Credit greatly impacted financial inclusion but had a negative correlation. Financial inclusion was greatly impacted by fintech regulation and showed a positive correlation. Financial inclusion was significantly impacted by fintech transactions and showed positive correlation. The study discovered that these elements accounted for 29.2% of variations in financial inclusion. A normal distributed population according to the Q-Q plot's well-aligned distribution was observed. Consequently, based on the results of the study. The areas that warrant further investigation includes; a comparative analysis of various fintech models and their impact on financial inclusion across different regions and countries can provide valuable insights. Secondly, exploring the potential impact of blockchain technology and cryptocurrencies on financial inclusion.