The Economic Impact of Fintech Innovation in Somalia

Abstract

Purpose – This study aims to explore how the Financial Technology (Fintech) industry contributed to the country’s economic growth.
Design/methodology/approach to meet the research goals, the study used a mix of methods, combining both qualitative and quantitative approaches. First phase conducted detailed interviewswith senior and mid-level managers from 25 financial institutions and Fintech companies of different sizes and backgrounds. In the second phase, 44 participants were selected together quantitative data, including employees from Fintech, academics, employment agencies, insurance firms, technology centers, incubators, and start-ups.
Findings – The Somali shilling is nearing extinction, and it is predicted that Somalia will become a fully cashless society in the coming years. However, financial technology (Fintech) is stepping in to fill this gap, playing an increasingly significant role in daily transactions. The rise of digital money,
like EVC Plus, has brought about various platforms for contactless payments in many areas, such as business deals, buying goods and services, sending money to rural and vulnerable communities, paying army salaries, collecting government taxes, reducing corruption and supporting those affected by floods, droughts, and conflicts. Fintech in Somalia is considered a key driver for promote inclusivity and boost economic participation for all citizens.
Research limitations/implications – Since the research was conducted on Economic Impact of Fintech Innovation in Somalia, the findings may not be applicable to other service sectors.
Originality/value – This research explores how financial technology (Fintech) industry contributed to the Somalia’s economic growth. The findings aim to help Somalia and other similar nations improve
Financial Technology (Fintech) in their economic sectors.