Influence of financial regulation on financial inclusion: A case study of the fintech industry in Kenya
Murgor, Eileen Chepkirui;
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This study investigates the relationship between financial regulation and financial inclusion in the Kenyan fin tech sector. The possibility of either variable influencing the other is put into consideration using secondary data from a survey over the period 2018 to 2019. By employing the use of a binomial logistic regression model, the findings indicate that there is a positive relationship between financial inclusion and financial regulation. More specifically, the usage of digital loan apps and mobile money has a significant positive correlation with financial regulation. Thus, greater financial inclusion leads to increased financial regulation, which positively impacts financial stability. The practical implications of this paper are that one of the ways policymakers and the government can increase financial inclusion is through creating favourable regulatory measures that create an enabling environment but not at the expense of consumer protection.