Does financial inclusion induce poverty, income inequality, and financial stability: empirical evidence from the 54 African countries?

Purpose The aim of the study is to examine the impact of financial inclusion on poverty, income inequality and financial stability using panel data of 54 African countries. Design/methodology/approach To achieve this objective, the current study used multiple regressions across an unbalanced panel data of 54 African countries which are based on the four years mean value for the period 2001-2019. Findings The results show that financial inclusion (FI) is a valuable indicator; it reduces poverty, income inequality and improves financial stability. Research limitations/implications The study invokes the attention of government and policymakers to build up a financially inclusive system which, in turn, leads to improve financial stability and lower poverty and income inequality. They should focus on quality and sustainable financial products and services in terms of financial inclusion to avoid dominant accounts and ensure consumer protection. Originality/value This adds to the scarce literature on the impact of financial inclusion on poverty, income inequality and financial stability in the context of African countries. The study contributes to the literature on the issue of financial inclusion and poverty, income inequality and financial stability by reconfirming (or otherwise) findings of previous studies.