Information Communication Technology and Financial Sector in West Africa

Abstract

Globally, information and communication technology play a pivotal role in driving the financial sector. This study examines the relationship between information communication technology and the financial sector in West Africa from 2012 to 2022. The study is essential because studies focusing on ICT and financial depth are scarce in West African nations. The data for the study comes from the World Bank database and uses the GMM system. The financial depth indicator is the ratio of bank assets to GDP while the indicators of ICT are internet subscription, mobile subscription and fixed broadband subscription. Mobile phone subscription significantly and statistically enhances financial depth of banks in West Africa by 423.82 % during the period under review. Internet subscription increases financial sector size by 11 % and the result is statistically significant. The fixed broadband positively influences the financial depth in West Africa by 341 %, and the result is statistically significant. Policymakers must invest heavily on ICT and adopt financial technology to promote financial depth.