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VOL. 6, ISSUE 2 (2024)
An assessment of the role of non-banking financial institutions in enhancing financial inclusion in Zambia
Authors
Mukonka Mulumbwa, Attridge Mwelwa
Abstract
This study evaluated how non-banking financial institutions (NBFIs)
contribute to financial inclusion in Zambia. The research aimed to assess the
strategies used by NBFIs to promote financial inclusion, identify the obstacles
they face when serving unbanked populations, and propose solutions for
overcoming these challenges. The study employed an exploratory research design
with a mixed-methods approach. Participants were selected through purposive
sampling, and data collection involved a self-administered questionnaire. The qualitative
data were analysed thematically, while the quantitative data were analysed
using SPSS version 27. The study identified several initiatives employed by
NBFIs to enhance financial inclusion, including agent banking, providing small
loans, partnerships with community organizations, financial literacy programs,
and mobile-based financial services. The challenges faced by NBFIs in promoting
financial inclusion included technological issues, regulatory constraints, a
lack of financial infrastructure, limited financial literacy, and inadequate
product variety. The study suggested that NBFIs could improve financial
inclusion by offering affordable services, promoting gender inclusivity,
providing financial education, focusing on underserved regions with agent
networks, and ensuring their services are easily accessible. Recommendations
from the study included that NBFIs in Zambia should leverage technology to
reach remote and marginalized communities, collaborate with government agencies
and NGOs to offer financial literacy programs, and expand their physical branch
networks and access points in underprivileged areas.
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Pages:71-81
How to cite this article:
Mukonka Mulumbwa, Attridge Mwelwa "An assessment of the role of non-banking financial institutions in enhancing financial inclusion in Zambia". International Journal of Management and Economics, Vol 6, Issue 2, 2024, Pages 71-81
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