The contribution of digital financial services to financial inclusion in Mozambique: an ARDL model approach

Abstract

This paper analyses the contribution of digital financial services to financial inclusion in Mozambique, based on the Autoregressive Distributed Lag (ARDL) model, for the period from January 2011 to September 2019. We study two models to analyse the contribution of digital financial services to financial inclusion (measured by the number of bank accounts) in Mozambique. The first model uses traditional digital means of payments as independent variables, such as the volume of financial transactions through automated teller machines (ATMs), point-ofsales (POSs), electronic transfers of inter and intrabank funds, direct debit, and domestic and crossborder remittances. The second model considers innovative digital means of payments, such as internet banking, mobile banking and electronic money. We conclude that, excluding domestic remittances and direct debit, which present low levels of penetration in the country, and internet banking transactions, the remaining variables contribute to financial inclusion. Our results confirm the crucial role that digital financial services play in financial inclusion, particularly in improving access to and the use of services by the under-served population.

Socio-economic characteristics, mobile phone ownership and banking behaviour of individuals as determinants of digital financial inclusion in India

“…The adoption of digital technologies in financial transactions has impacted the livelihood of the citizens in India positively (Malladi et al ., 2021). Fernandes et al . (2021) analysed the contribution of digital financial services to financial inclusion in Mozambique and confirmed the crucial role of digital financial services in improving access to and use of financial services by the underserved population.…”

Research on the Development Dilemma and Countermeasures Faced by Rural Digital Inclusive Finance

“…First, the contradiction between the total supply and demand of rural finance has been alleviated. By integrating traditional finance and modern financial technology, the service radius and coverage of inclusive finance can be broadened, which can not only expand the total financial supply in rural areas, but also fully meet the needs of farmers [3]. Digital inclusive finance applies digital transaction methods to simplify over-the-counter transaction procedures and significantly improve the operational efficiency of financial institutions.…”

“…On the basis of doing a good job in service work, the staff of business outlets should simultaneously carry out promotion and publicity activities, and use publicity materials, self-service equipment, etc. to share knowledge of digital finance with rural residents [3]. Based on the actual situation of the region, activities such as knowledge going to the countryside can also be carried out on a regular basis, and digital financial knowledge can be popularized and popularized by means of lectures and training of financial assistants in villages, knowledge competitions, etc.…”

Research on the Dependence Structure and Risk Spillover of Internet Money Funds Based on C‐Vine Copula and Time‐Varying t‐Copula

“…Tan et al [6] conducted an in-depth revelatory case study on Yu'E Bao. Fernandes et al [7] adopted the autoregressive distributed lag (ARDL) model and analyzed the contribution of digital financial services to financial inclusion in Mozambique. Wang and Ben [8] examined the relationship between online shopping and investment in e-commerce money market funds based on the data from the China Household Finance Survey dataset.…”