Do individual and country-level factors cushion the impact of COVID-19 financial worry on digital financial inclusion in Africa?

The COVID-19 pandemic accelerated digital onboarding and Fintech adoption, reshaping financial behaviours. However, the pandemic also introduced financial hardships, leading to negative impacts on digital financial inclusion. Using the 2021 World Bank’s Findex data on 31 African countries and a series of probit models, we find that COVID-19 financial worry has a significant negative effect on the adoption of digital financial services and that this phenomenon is likely to negatively influence post-COVID-19 digital financial inclusion in Africa. We also show that demographic and country-specific factors are significantly likely to cushion the negative effects of COVID-19-related financial worries on digital financial inclusion. We show the behavioural channels bridging the connection between COVID worry and digital financial inclusion. The findings underscore the need for targeted policy interventions aimed at enhancing financial resilience and inclusion during crises