THE IMPACT OF ATM DENSITY ON FINANCIAL AVAILABILITY IN SUB-SAHARAN AFRICA: EVIDENCE FROM PANEL COINTEGRATION

Abstract

Financial availability remains a critical constraint to inclusive economic development in Sub-Saharan African, where traditional banking infrastructure is limited, especially in low income and rural areas. Automated Teller Machine (ATMs) provides a cost-effective alternative for expanding access to financial services. This study evaluates the long-run impact of ATM density on financial Availability in SSA. The study utilizes secondary data from the international Monetary Fund Financial Assess Survey (FAS) for 30 SSA countries from 2015 to 2024. The study employed three panel cointegration techniques, specifically Kao, Pedroni and Westerlund to analyze the long run and short run relationship among the variables. The findings reveal a significant long-run impact of ATM density on financial availability. The study concludes that ATM expansion is a vital driver of financial availability in the region. Consequently, the study recommends that government in SSA should increase investment in broadband internet, electricity supply, telecommunications networks and digital payment infrastructure, particularly in underserved rural communities.