Efficacy of Fintech Solutions in Advancing Financial Inclusion for the Financially Underserved in South Africa

Efficacy of Fintech Solutions in Advancing Financial Inclusion for the Financially Underserved in South Africa

Kumasi, Ghana & Virtual

Fintech growth in South Africa has expanded access to digital financial tools. However, financially underserved communities continue to experience persistent and evolving forms of financial exclusion. This paper presents preliminary findings from an ongoing qualitative study assessing the efficacy of fintech solutions in advancing financial inclusion among underserved communities in South Africa. The study is grounded in an interpretivist philosophy, Sen’s Capability Approach, Critical Theory, and employs Constructivist Grounded Theory. We collected data for the study using semi-structured interviews with underserved users and key stakeholders. Building on a five-domain fintech efficacy framework developed through a prior systematic literature review, early analysis reveals four emerging themes: conditional trust in fintech platforms; structural exclusion reproduced in digital form; the digitisation of existing offerings without substantive transformation; and a substitution paradox in which an online gambling platform functions as a de facto financial access point. These findings suggest that while fintech has improved access to and adoption of financial services, it has not yet delivered effective or sustained financial inclusion outcomes. Implications for fintech design, regulation, and policy are discussed.