Digital Financial Services and Strategic Financial Management: Financial Services Firms and Microenterprises in African Markets

Abstract

This study highlights the impact of digital financial services as enhancing the capacity of development goals as well as social sustainability. The selected emerging markets are Ghanaian financial service providers (FSP)s and microenterprise customers (CME)s, where we examine how “Ubuntu”, an African philosophy of humanism, legitimizes spaces for a more democratic, egalitarian, and ethical engagement of human beings. This study adopts a grounded theory methodology for investigation of the phenomena with a sample size of 70 relationship managers. The findings further existing sustainability literature pertaining to social sustainability and consumer wellbeing. We contribute to theory by presenting a psychological perspective which be leveraged for digital financial services branding to expand usage within communal systems. This leverage of Ubuntu becomes especially relevant when there is the need to compensate for deficits in weak business infrastructures in low-income but expanding markets. Our study highlights digital financial services can be used to improve the emotional and psychological consumer wellbeing and to strengthen business relationships, meeting joint goals of market share expansion, brand image enhancement and profitability. This perspective also contributes to social sustainability on a global scale since the Western world depends on quality products from emerging markets.