Effect of E-Banking on Financial Inclusion in Nepal

Abstract

The study examines the effect of electronic banking on financial inclusion in Nepal. Financial inclusion is the dependent variable. The selected independent variables are automated teller machine, point of sale terminal, internet banking, mobile banking, andagency banking. The primary source of data is used to assess the opinions of the respondents regarding the financial inclusion and electronic banking. The study is based on primary data of 150 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The regression models are estimated to test the significance and importance of electronic banking on financial inclusion in Nepal. The study showed that automated teller machine has a positive impact on financial inclusion. It indicates that increase in number of automated teller machines leads to increase in financial inclusion. Similarly, mobile bankinghas a positive impact on financial inclusion. It indicates that better orientation towards mobile banking leads to increase in financial inclusion. Likewise, internet banking has a positive impact on financial inclusion. It indicates that better orientation towards the internet banking leads to increase in financial inclusion. Furthermore, agency banking has a positive impact on financial inclusion indicating that increase in agency banking leads to increase in financial inclusion. Lastly, point of sale has a positive impact on financial inclusion. It indicates that better orientation towards point-of-sale services leads to increase in financial inclusion.