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The purpose of this paper is to analyse the relationship between financial inclusion, banking stability and economic growth in sub-Saharan African countries given the interconnectedness between them. Globally, financial inclusion has gained recognition as a critical channel for promoting economic growth by bringing a large proportion of the unbanked population into the formal financial system. This cannot be achieved exclusive of the banking sector.

This paper focussed on 18 countries in sub-Saharan Africa. Data on financial inclusion and the economy were obtained from the World Bank, and bank soundness indicators data were also obtained from International Monetary Fund covering the 11-year period from 2008 through 2018. Panel system generalised method of moments is employed for the regression analysis because it has the capability to produce unbiased and consistent results even if there is endogeneity in the model.

The results show that economic growth drives banking stability and not vice versa; confirming a unidirectional causality from gross domestic product to banking stability. So, this study finds support for the demand-following hypothesis. The paper further observed that financial inclusion positively and significantly influences the stability of banks and economic growth. The study established that bank capital regulation negatively influences banking stability in sub-Saharan African countries.

This study does not capture the unique country-specific relationship.

The policy implication is that policymakers in sub-Saharan African countries should focus on growth-enhancing policies that improve the level of financial inclusion. The central banks in sub-Saharan African countries should take advantage of the positive effect of financial inclusion to develop regulatory frameworks and policies that make it attractive for banks to continue to expand their operations to the unbanked.

This is, as far as the authors know, the explanation of the interconnection of financial inclusion, banking stability and economic growth in sub-Saharan Africa.

Financial inclusion washing has not been considered to be a crime although it should be. This paper aims to present a discussion about financial inclusion washing. It was argued that financial inclusion washing is the deliberate or unintentional use of exaggerated claims or misleading claims to describe an entity’s commitment to increase the level of financial inclusion.

This paper used the conceptual discourse analysis methodology.

This paper showed that many entities are at risk of practicing financial inclusion washing such as international development organizations, aid organizations, government agencies, central banks, financial institutions, financial inclusion support groups and associations, among others. This paper also highlighted the manifestations, motivations and consequences of financial inclusion washing. This paper also identified ways through which entities can avoid financial inclusion washing.

The literature has not examined how exaggerated claims about financial inclusion efforts mislead people.

Purpose: This chapter aims to present the arguments for and against central bank digital currency (CBDC) increasing financial inclusion. Financial inclusion is one of the many reasons for issuing a CBDC.

Need for the study: There is a need to offer a critical perspective on the proposed financial inclusion benefits of CBDC. This is the first paper to present arguments supporting and statement against CBDC for financial inclusion.

Method: This chapter uses discourse analysis methodology to identify the arguments about CBDC promoting financial inclusion

Findings: The arguments in support of CBDC increasing financial inclusion are that CBDCs can digitise value chains, CBDCs can improve access to digital financial services, CBDCs can help to enlarge the digital economy, CBDCs can enhance the efficiency of digital payments, CBDCs can be used offline when there is no internet coverage, and CBDCs have low transaction costs. Some criticisms are that CBDC may not prioritise financial inclusion, a high price to purchase digital devices for holding a CBDC, non-interest-bearing CBDCs, the strong preference for cash over digital currency, the burdensome identification and regulatory requirements, and the imposition of transaction costs.

Implications: Overall, the arguments presented in this chapter show that there is still disagreement over whether a central bank’s digital currency can increase financial inclusion. Nevertheless, in the light of recent events, many central banks are determined to issue a CBDC for many reasons. Even though CBDCs do not achieve the intended financial inclusion objective, at least the other goals for publishing a CBDC will be performed, such as a significant reduction in cash management costs and the effective conduct of monetary policy.

Upon reading, analyzing and participating in the classroom discussion of this case study, students will be able to use the blue ocean strategy (mainly the Strategy Canvas tool) to analyze how companies establish their products as viable and the go-to solution for consumers; perform a competitive analysis for competitive products; learn how to use data from the case, including industry trends, to predict the future market position of products; and learn how to develop strategies for new products in the market.

Abdishakur M. Afrah, who served as the Head of Business Development at Premier Bank, oversaw a substantial banking portfolio, which included Premier Wallet – the first digital wallet in Somalia. This case study outlines Premier Wallet’s journey and its transformative impact on the banking sector. Owing to the mobile wallet, consumers could, for the first time, engage in purchasing, withdrawing cash, shopping online and topping up without needing a bank account at Premier Bank. This allowed for the financial inclusion of the unbanked Somali population. This case study also highlights the Wallet Send feature, a disruptive feature that challenged the prevalent Hawala system in Somalia. This feature enabled customers to send money across 110 countries via their smartphones, facilitating direct deposits to the mobile or bank accounts of their family and friends or to cash withdrawal points nearby. Despite these advanced features, Premier Wallet struggled with broader acceptance, hindered by a mere 9% internet penetration, the absence of a national identification (ID) system and stiff competition from WAAFI, a fintech application supported by Hormuud Telecom, Somalia’s leading telecommunications company. The case study also delves into the strategic decisions Afrah had to make to position Premier Wallet as the top mobile money option for consumers in Somalia.

This case study is suited for undergraduate-level courses.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship

Purpose – The purpose of this paper is to show that having a bank account is an important precursor to participating in the US financial mainstream. However, about 24 percent of Hispanic households in the USA are unbanked. This study seeks to examine whether the use of banks among Hispanic consumers can be explained by acculturation and microcultural factors. Design/methodology/approach – The model proposes that having a checking or savings account is a function of acculturation, microculture, and demographics. Acculturation is measured in terms of length of time in the USA; plans to remain in the USA temporarily versus permanently; Spanish language use; and citizenship status. Microculture is measured by country of origin. Data used for this analysis were collected in a survey sponsored by a start‐up financial institution interested in targeting the Hispanic market. These data were collected in 2004 during telephone interviews with 1,000 Hispanic renters in major markets across the USA. Findings – More acculturated Hispanic consumers are more likely to have a bank account, regardless of income, and level of education. In addition, the propensity to have a bank account varies by country of origin. Practical implications – Marketers and policymakers should target less acculturated immigrants who view themselves as temporary US residents, and those who use Spanish primarily for communicating outside the home. Marketers should emphasize the safety and soundness of the US banking system and should accommodate needs for international funds transfers. Originality/value – The findings can help financial service providers and public policy makers to target a growing market segment.

Recognising the high numbers of unbanked and financially excluded adults in Nigeria, this study aims to position chatbot as a digital transformation tool to radically change business model, improve customer experience and enhance financial inclusion in emerging markets.

The Search-Access-Test (S-A-T) model was adopted to understand how Nigerian banks are adopting chatbots.

A majority of Nigerian banks now have chatbots that enhance customer engagement and financial inclusion. WhatsApp was the most frequently used platform. Chatbots were often branded and presented with female gender identification. The chatbots were less responsive beyond their predefined path. While Nigeria is a multilingual country with English being the original language, none of the chatbots used any of the Nigerian’s local languages.

Brands need to re-evaluate their chatbots with regard to responsiveness, predefined questions, verification and privacy. There are also possibilities of branding the chatbot and developing content creation strategies for proper engagement. Beyond English, the integration of African languages into chatbot is essential for digital transformation. Digital literacy and skills, particularly in the field of science, technology, engineering and mathematics, should be supported to equip future developers and create more jobs.

While many theoretically based models for investigating the adoption of digital technologies have often placed focus on users’ ability to engage, this study takes an alternative perspective; by using the S-A-T model, it lays the responsibilities on the banks and chatbot developer to ensure that their chatbots are secure, responsive and able to meet the needs of the customers.

To explore how inclusive banking services are marketed to financially vulnerable consumers (FVCs) in Ghana from the perspective of managers. This study aims to explore this under-researched area and contribute towards a transformative service research in the country.

This study adopted a multiple case study research approach to analyse six banks, including commercial, development, investment and rural and community banks. Specifically, semi-structured interviews and archival documents were used to collect data from the perspectives of bank managers.

The empirical research based on practical and theoretical models shows that Ghanaian banks design an array of financial products and services (FPS), adopt innovative traditional marketing strategies and apply inclusive technologies to reach out to the FVCs.

The authors conducted this study on six banks in Ghana; thus, service researchers are cautioned when generalising the findings and conclusions in other contexts beyond the country of focus.

This study offers practical ideas to guide marketers to better understand how banks market their inclusive banking services to FVCs.

This paper provides implications for addressing financial inclusion amongst the “unbanked”, “underserved” and “unserved” collectively known as the FVCs and how Ghanaian banks design FPS to improve service research and well-being outcomes.

This study provides vital information to policymakers in designing FPS aimed at achieving an inclusive financial system to improve the well-being of FVCs in Ghana.

This study aims to explore how banks in Nigeria are marketing financial services to financially vulnerable customers.

A multiple case study research strategy was used to analyse three commercial banks and two microfinance banks. Data were collected using semi-structured interviews with the banks' directors as well as from banks' published annual reports and archival images.

The study reveals that Nigerian banks develop different product development portfolios, adopt innovative traditional marketing schemes and apply inclusive technologies to reach and extend services to the unbanked and financially vulnerable customers in the society.

Banks should focus on consumer engagement through the proactive development of technologies and employ innovative marketing methods. Customers' banking experiences can be enhanced if banks communicate with and educate customers about technological modes of engagement. In addition, financial service transaction support and financial literacy education can assist banks in marketing their services to financially vulnerable customers, in mutually beneficial ways.

This study shows how financial service operators' market and extend their services to financially vulnerable customers in emerging markets. It empirically establishes the importance of financial services to financially excluded customers.