The financial development of a double-edged sword?

Abstract: Since the mid-2000s, the financial sector in Kenya has experienced an unprecedented surge in financial inclusion amongst the population. Often attributed to financial technologies, commonly known as FinTech, the financial sector in Kenya has seen a boom-like expansion of providers seeking to establish themselves on the market. Leading to further services being provided, a rift between scholars has appeared where promises of deepened financial inclusion has been paralleled with warnings of potential financial hazards amongst users. By analyzing the services provided by M-Shwari in Kenya, this thesis established that FinTech development indeed facilitates deepened financial inclusion in theory. Through the use of exploratory quantitative analysis and descriptive statistics, a further examination of the patterns and indicators established in the theoretical framework were conducted by looking at the financial behavior of individuals using M-Shwari. The analysis found that patterns of deepened financial inclusion indeed could be detected, but that a definite correlation could not be established. However, this thesis concludes that M-Shwari users are more likely to become further financially included than excluded.