The Role of Banking Digitalization in Promoting Financial Inclusion of Micro, Small, and Medium Sized Enterprises in Morocco (International Journal of Accounting, Finance, Auditing, Management and Economics)

Summary

• In 2019, Bank Al-Maghrib and the Ministry of Economy and Finance launched the National Financial Inclusion Strategy (SNIF) to treat digitalization as a structural lever for inclusion.p.3
• Over 20 payment institutions are now operational in Morocco, including entities like Inwi Money, Orange Money, and M-Wallet.p.7
• According to Bank Al-Maghrib's 2023 report, 7.1 million electronic wallets were registered, including 5.3 million active ones, marking a 30% increase in active accounts from 2022.p.7
• The total number of payment accounts reached 6.2 million, which includes both active and dormant accounts.p.7
• An HCP report from 2022 notes that around 40% of MSMEs lack reliable Internet access, forming a major digital divide.p.7
• More than 6 million payment accounts have been created since the SNIF launch, according to BAM's 2023 report.p.9
• A survey by CGEM reveals that 40% of MSMEs remain reluctant to use online banking services due to fear of cyber fraud.p.11

Key insights

1. Morocco launched the National Financial Inclusion Strategy (SNIF) in 2019 to position digitalization as a structural driver of financial inclusion.p.3
2. More than 20 payment institutions operate in Morocco, offering digital financial services without requiring physical branches.p.7
3. In 2023, registered electronic wallets reached 7.1 million, with 5.3 million active wallets reflecting a 30% year-over-year increase.p.7
4. Roughly 40% of Moroccan MSMEs lack reliable Internet access, which restricts their adoption of digital financial services.p.7
5. More than six million payment accounts have been opened in Morocco since the inception of the SNIF.p.9
6. Digital scoring solutions utilize non-traditional data such as transaction histories and social media interactions to evaluate MSME creditworthiness.p.10
7. Security fears remain a barrier, with 40% of MSMEs hesitant to adopt online banking due to risks of cyber fraud.p.11
8. 4G mobile network coverage reaches 92% in urban areas compared to 51% in rural areas, while fiber access stands at 41% urban versus 12% rural.p.11