COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic

COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic

The COVID-19 (coronavirus) pandemic and resulting containment measures are likely to cause an economic contraction of about 2.8 percent in Sub-Saharan Africa (SSA) in 2020 according to the Global Economic Prospects. Among the many adverse effects i...

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Bibliographic Details
Main Author: Machasio, Immaculate Nafula
Format: Brief
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
FINANCIAL INCLUSION
FINANCIAL SERVICES
MOBILE MONEY
DIGITAL TECHNOLOGY
ACCESS TO FINANCE
CORONAVIRUS
COVID-19
GLOBAL FINDEX
POLICY RESPONSE
PANDEMIC IMPACT
Online Access:http://documents.worldbank.org/curated/en/918121602706504126/COVID-19-and-Digital-Financial-Inclusion-in-Africa-How-to-Leverage-Digital-Technologies-During-the-Pandemic
http://hdl.handle.net/10986/34637
id okr-10986-34637
recordtype oai_dc
spelling okr-10986-346372021-05-25T10:54:41Z COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic Machasio, Immaculate Nafula FINANCIAL INCLUSION FINANCIAL SERVICES MOBILE MONEY DIGITAL TECHNOLOGY ACCESS TO FINANCE CORONAVIRUS COVID-19 GLOBAL FINDEX POLICY RESPONSE PANDEMIC IMPACT The COVID-19 (coronavirus) pandemic and resulting containment measures are likely to cause an economic contraction of about 2.8 percent in Sub-Saharan Africa (SSA) in 2020 according to the Global Economic Prospects. Among the many adverse effects in the global economy, the crisis is posing a deep threat to financial inclusion efforts globally. Lockdowns and curfews designed to curb the spread of the virus resulted in the closure of bank branches and halted operations of mobile money agents in compliance with restrictions. Government officials and health practitioners encouraged use of cashless and contactless modes of payment to reduce the risk of virus spread through handling of cash, thus creating new opportunities for potential adoption of Digital Financial Services (DFS). Small firms and low-income households can directly benefit from digital solutions such as mobile money services, online banking and other financial technology innovations. Recent evidence suggests that digital financial inclusion could significantly contribute to economic growth, reduce poverty and narrow income inequalities without necessarily causing adverse effects on financial stability given the appropriate regulatory framework. The brief focuses on the impact of COVID-19 on financial inclusion and the potential of robust policy responses. The authors drew on the Global Findex database to showcase policy options that harness maximum benefits from digital technology, promoting financial inclusion and mitigating adverse impacts during the pandemic and beyond. The poor and vulnerable groups, such as women, the rural poor and youth, are bearing the economic brunt of the socioeconomic consequences of the pandemic. Day laborers and those in the informal sector are also among the most affected categories of workers. 2020-10-16T20:44:53Z 2020-10-16T20:44:53Z 2020-10 Brief http://documents.worldbank.org/curated/en/918121602706504126/COVID-19-and-Digital-Financial-Inclusion-in-Africa-How-to-Leverage-Digital-Technologies-During-the-Pandemic http://hdl.handle.net/10986/34637 English Africa Knowledge in Time Policy Brief; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic FINANCIAL INCLUSION
FINANCIAL SERVICES
MOBILE MONEY
DIGITAL TECHNOLOGY
ACCESS TO FINANCE
CORONAVIRUS
COVID-19
GLOBAL FINDEX
POLICY RESPONSE
PANDEMIC IMPACT
spellingShingle FINANCIAL INCLUSION
FINANCIAL SERVICES
MOBILE MONEY
DIGITAL TECHNOLOGY
ACCESS TO FINANCE
CORONAVIRUS
COVID-19
GLOBAL FINDEX
POLICY RESPONSE
PANDEMIC IMPACT
Machasio, Immaculate Nafula
COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic
geographic_facet Africa
Sub-Saharan Africa
relation Africa Knowledge in Time Policy Brief;
description The COVID-19 (coronavirus) pandemic and resulting containment measures are likely to cause an economic contraction of about 2.8 percent in Sub-Saharan Africa (SSA) in 2020 according to the Global Economic Prospects. Among the many adverse effects in the global economy, the crisis is posing a deep threat to financial inclusion efforts globally. Lockdowns and curfews designed to curb the spread of the virus resulted in the closure of bank branches and halted operations of mobile money agents in compliance with restrictions. Government officials and health practitioners encouraged use of cashless and contactless modes of payment to reduce the risk of virus spread through handling of cash, thus creating new opportunities for potential adoption of Digital Financial Services (DFS). Small firms and low-income households can directly benefit from digital solutions such as mobile money services, online banking and other financial technology innovations. Recent evidence suggests that digital financial inclusion could significantly contribute to economic growth, reduce poverty and narrow income inequalities without necessarily causing adverse effects on financial stability given the appropriate regulatory framework. The brief focuses on the impact of COVID-19 on financial inclusion and the potential of robust policy responses. The authors drew on the Global Findex database to showcase policy options that harness maximum benefits from digital technology, promoting financial inclusion and mitigating adverse impacts during the pandemic and beyond. The poor and vulnerable groups, such as women, the rural poor and youth, are bearing the economic brunt of the socioeconomic consequences of the pandemic. Day laborers and those in the informal sector are also among the most affected categories of workers.
format Brief
author Machasio, Immaculate Nafula
author_facet Machasio, Immaculate Nafula
author_sort Machasio, Immaculate Nafula
title COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic
title_short COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic
title_full COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic
title_fullStr COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic
title_full_unstemmed COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic
title_sort covid-19 and digital financial inclusion in africa : how to leverage digital technologies during the pandemic
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/918121602706504126/COVID-19-and-Digital-Financial-Inclusion-in-Africa-How-to-Leverage-Digital-Technologies-During-the-Pandemic
http://hdl.handle.net/10986/34637
_version_ 1764481326880129024

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