Role of Digital Platforms as Financial Literacy Delivery Channels for Promotion of Financial Inclusion in Commercial Banks in Kenya

Abstract

Kenya features high financial services availability and accessibility. However, the usage of these services is low and it remains a challenge for full-service banks who are the suppliers and the main players for inclusion within the financial markets. Against this backdrop, this study sought to evaluate the effect of digital platforms as a channel for providing financial literacy for financial inclusion of commercial banks. The study was guided by diffusion of innovation theory. Using descriptive research design, a sample of 384 respondents was randomly selected from a target population of 10,717 management staff of commercial banks in Kenya. The data collected were analyzed using descriptive, correlation, and regression analysis. Digital platforms channels were found to significantly affect financial inclusion in commercial banks in Kenya. The study concluded that commercial banks in Kenya had leveraged on the reachable of digital platforms like websites and online portals, social media pages, and online games and courses as channels of promoting financial literacy that significantly contributed to inclusion. The study recommended that the management of banks engaged in commercial activities should ensure the ICT department has a team dedicated to providing financial literacy training using digital platforms targeting loan applicants to improve their usage of financial services. The study expanded the utility of diffusion of innovation theory, to link the relationship between digital platforms as a channel for providing financial literacy for financial inclusion of commercial banks. Most of the existing research that adopted the theory used it in a different context, hence the study contributed by developing the utility of the diffusion of innovation theory.