Role of Digital Innovation in Enhancing Financial Inclusion among Petty Traders in Anambra State

Many petty traders face financial barriers that limit their growth and innovation. Some constraints hinder their ability to innovate and expand their businesses. Digital financial services can alleviate these barriers by providing alternative financing options for small-scale entrepreneurs. However, high-tech technologies may have uneven access to adoption compared to low-tech ones, such as petty traders who lack access to advanced tools. This study examines the role of digital innovation in enhancing financial inclusion among petty traders in Anambra State. The theory for this study was the diffusion of Innovation theory. The research design was a descriptive cross-sectional survey design. Cochran’s formula was used to determine the sample size of 195. The instrument for data collection was a structured questionnaire. A pilot study was conducted to determine the validity of the instrument, while Cronbach’s alpha was used to assess the internal consistency of the questions. Data was analysed using descriptive statistics and frequencies. The statistical analysis used was SPSS. The study found that petty traders in Anambra state have adopted digital financial tools such as mobile money app transfers, but do not have access to credit. Therefore, digital innovation has not played its role in giving petty traders access to financial services, which helps in capital formation. The key strategic digital tool used is the Mobile Money App, which is used daily. Also, Petty traders in Anambra face challenges in the use of Digital financial tools, such as poor network connections, high transaction costs, lack of trust in digital platforms, fear of fraud and cybercrimes. The study recommended, amongst others, that to encourage access to credit for petty traders in semi-urban areas in Anambra state; the government can back up microcredit programs such as Tradermoni to target petty traders and also ensure that such programs have low interest rate and low documentation so that petty traders can be able to repay. Again, mobile banking can be encouraged through digital loan products which are tailored for low-income users instead of formal credit.