ICT, Financial Sector Development and Financial Access

Simplice Asongu, Jacinta Nwachukwu

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23 Citations (Scopus)
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This study assesses the role of ICT (internet and mobile phone penetration) in complementing financial sector development (financial formalization and informalization) for financial access. The empirical evidence is based on generalized method of moments with 53 African countries for the period 2004–2011. The following findings are established from linkages between ICT, financial sector development and financial activity. First, the interaction between ICT and financial formalization (informalization) decreases (increases) financial activity. Second, with regard to net effects, the expected signs are established for the most part. In spite of the negative marginal effects from financial informalization, the overall net effects are positive. Third, the potentially appealing interaction between ICT and informalization produces positive thresholds that are within ranges. Policy implications are discussed in three main strands. They include implications for (i) mobile/internet banking, (ii) a quiet life and (iii) ICT in reducing information asymmetry and surplus liquidity.
Original languageEnglish
Pages (from-to)465–490
Number of pages26
JournalJournal of the Knowledge Economy
Issue number2
Early online date20 Mar 2017
Publication statusPublished - Jun 2019

Bibliographical note

The final publication is available at Springer via http://dx.doi.org/10.1007/s13132-017-0477-x


  • Allocation efficiency
  • Financial sector development
  • ICT

ASJC Scopus subject areas

  • Economics and Econometrics


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