Examanining the Role of Technology Inclusion in Enhancing Financial Inclusion for Small and Medium Enterprises (SMEs): A Case Study of Somalia

Abstract

The purpose of this study was to evaluate the role of technology in enhancing financial inclusion for small and medium enterprises (SMEs) in Somalia. It specifically focused on the impact of ICT tools, digital payment systems, and social media platforms on SMEs’ financial inclusion. A quantitative approach was used, relying on secondary data from the World Bank. The data were analyzed using STATA v.17. The findings revealed that ICT tools significantly influenced financial inclusion by improving access to financial services. Digital payment systems enhanced financial inclusion by providing secure and efficient transaction methods, particularly in areas with limited banking infrastructure. Social media usage also played a key role, with SMEs using these platforms experiencing greater financial inclusion than those that did not. These findings highlight the importance of ICT tools, digital payments, and social media in promoting financial inclusion for SMEs. The study suggests increasing access to these technologies to improve financial services for SMEs, supporting their growth and sustainability in Somalia. For financial institutions and politicians looking to improve financial inclusion in developing nations, especially Somalia, the study provides insightful information. In order to promote economic development, the report suggests that digital technology be more integrated into the financial services industry.