Bridging Horizons: The Symphony of Digital Banking and Financial Inclusion in the Gambia

Abstract

This study examined the critical nexus between digital banking and financial inclusion in The Gambia, focusing on assessing the current state of digital banking services, identifying factors driving their adoption, and evaluating their impact on financial inclusion. A descriptive cross-sectional research design was adopted, using stratified sampling to ensure comprehensive stakeholder representation, and the findings were on the three hypotheses of the study. First, Hypothesis 1 revealed a strong positive correlation between digital banking accessibility and user adoption rate (0.877), significantly impacting financial inclusion (0.770). Moreover, mobile and internet banking showed a positive, though less pronounced, correlation with financial inclusion (0.423). Therefore, these findings indicate that improved digital banking infrastructure quality correlates positively with financial inclusion, underscoring the importance of enhancing accessibility and promoting user adoption. Subsequently, Hypothesis 2 examined the impact of socioeconomic factors, including income, education, and age, on digital banking services. With an R-value of 0.856 and an R square of 0.733, regression analysis demonstrated the importance of socioeconomic factors in determining the adoption of digital banking, which is 73.3% dependent on factors like employment status, education level, and income. Hence, addressing socioeconomic disparities is essential for the broader adoption of digital banking services. Lastly, Hypothesis 3 investigated the influence of digital banking services on financial inclusion. The model-fitting information showed that employment status significantly influenced financial inclusion, while other factors like age, income, and education exhibited limited statistical significance. Additionally, the limited availability of digital wallets and restricted payment transactions negatively impact financial inclusion, suggesting that improving these aspects is crucial for advancing financial inclusion efforts. The study concluded that improving accessibility to digital banking, addressing socioeconomic disparities, and enhancing digital payment options are critical steps in advancing financial inclusion in The Gambia.