The Impact of Digital Transformation on Financial Inclusion: Through the Case of Mobile Money Account in Senegal

Abstract

This study examines the impact of digital transformation on financial inclusion, focusing on the case of mobile money accounts in Senegal. As the world experiences rapid technological advancements, digital financial services have emerged as a key driver of financial inclusion in developing economies. Through the scope of mobile money accounts, this research analyzes the extent to which digitalization has facilitated access to financial services for diverse socioeconomic groups in Senegal. Based on the microeconomic data from the World Bank's Global Findex database, this study investigates the ownership of mobile money accounts across various demographic factors, such as gender, education, and income levels. By employing logistic regression analysis, the findings reveal that Senegal has experienced financial inclusion through mobile money accounts when considering the overall increase in the number of account holders. However, the results show that inequality in financial inclusion exists among different groups, manifesting in distinct patterns across education, income, and gender categories. As digital financial services offer a promising path for broader access to financial accounts, the research highlights the significance of proactive government policies aimed at reducing disparities and ensuring equitable financial inclusion for all socioeconomic segments. Overall, this study contributes to the existing literature on financial inclusion and digital transformation, providing valuable insights for policymakers, financial institutions, and international organizations working towards sustainable and inclusive financial systems in developing countries like Senegal.