A new study suggests that simple digital finance tools, including mobile money services, may help small businesses strengthen their long-term competitiveness rather than simply improving access to banking services. Led by researchers at the University of East London, the study examined 113 micro, small and medium-sized enterprises (MSMEs) in Ghana and found that businesses gained the greatest benefits when digital finance tools became integrated into everyday operations rather than being used only for transactions. Firms reported improvements in efficiency, customer service and flexibility.

Mobile money services allow people and businesses to send, receive and store money using mobile phones without requiring a traditional bank account. The researchers say mobile phones are increasingly becoming strategic business tools for many small firms, helping them manage finances, reach customers and compete in rapidly changing markets. The study was conducted by researchers from the Royal Docks School of Business and Law together with partners in Ghana.

The findings could have implications beyond the African case study. Across many developing economies, millions of small businesses still face barriers related to banking, credit and digital infrastructure. The researchers suggest that accessible financial technology could help smaller firms compete more effectively, strengthen local economies and improve resilience during economic shocks and periods of uncertainty.

Lead author Godfried Adaba, Lecturer in Business Analytics, said, “Our findings show that digital finance can also become a strategic tool that helps small businesses compete and innovate. The wider lesson is that digital finance works best when it is simple enough for everyday use and deeply embedded into how businesses operate.” The research, published in Global Business Review, also found that ease of use mattered more than many experts had expected, with businesses far more likely to adopt tools they viewed as simple and reliable.

Co-author Francis Frimpong said, “Ease of use is not a minor issue for small businesses. Indeed, it is often the deciding factor. If digital finance systems are too complex or difficult to trust, many firms simply will not use them. That matters globally because it shows that successful FinTech innovation must be about creating tools ordinary businesses can use confidently every day.” The researchers added that policymakers, banks and technology companies should focus not only on expanding digital access, but also on improving usability, trust and digital skills among small business owners.

More information: Godfried Adaba et al, From Inclusion to Advantage: FinTech Adoption and Competitive Strategy Among MSMEs in Ghana, Global Business Review. DOI: 10.1177/09721509261428912

Journal information: Global Business Review Provided by University of East London