Letters in Economic Research Updates
Financial Technology as a Catalyst for Post-COVID-19 Financial Inclusion in East Africa: A Critical Analysis
Abstract
Elemegious Mugamba
In the wake of COVID-19, Financial Technology (Fintech) has emerged as a transformative force reshaping the contours of financial inclusion across East Africa. This empirical study critically investigates the catalytic role of Fintech in bridging the financial access gap in Kenya, Tanzania, Uganda, and Rwanda, regions historically plagued by structural and socio- economic barriers to financial services. Leveraging a mixed-methods approach, this research draws from 375 survey responses and hierarchical regression analysis to examine the interplay between Fintech usage, digital financial inclusion (DFI), and technology self-efficacy. The findings reveal a significant positive impact of Fintech, particularly mobile money services, digital lending platforms, and micro-insurance on DFI, with technology self-efficacy emerging as a key moderating variable. Moreover, the paper highlights the adaptive behaviors triggered by the pandemic, which accelerated the digitization of financial services in sectors such as agriculture, healthcare, and informal trade. The study further explores the evolving regulatory frameworks and digital financial ecosystems facilitated by Mobile Network Operators (MNOs) and Central Banks, noting both opportunities and compliance challenges. This research contributes original insights to digital finance scholarship, offering a nuanced, data-driven understanding of how Fintech innovation anchored in socio-technical adaptation and inclusive design can foster resilient, equitable economic recovery in post- pandemic African economies. The study not only advances financial inclusion theory but also informs global development policies and digital regulation paradigms.