Effect of Financial Technology on Financial Inclusion in Nigeria

Abstract

This study examined the effect of financial technology on financial inclusion in Nigeria. This study used quarterly secondary data and all the data were extracted from Central Bank of Nigeria (CBN) Statistical Bulletin (2021) from 2009-2019. In this study, financial technology was proxy using point of sale, automated teller machine, web banking technology and mobile banking technology, while financial inclusion in Nigeria was proxy using deposit ratio. Time series data were analyzed using the vector auto regression (VAR) estimation technique. The results show that web banking technology has a positive and significant effect on financial inclusion in Nigeria, whereas point of sale, automated teller machine and mobile banking technology have a positive but not significant effect on financial inclusion in Nigeria. This suggests that an increase in the usage of financial technology (ATM, POS, WEB and mobile technology) will cause more Nigerians to be financially included. Based on the findings, the study recommends that policymakers should encourage the development of affordable and accessible 3G and 4G mobile networks in order to provide rural and remote customers with better access to mobile banking and other financial technologies. Finally, banks should seek to improve the financial literacy of their customer base by offering regular educational programmes on topics such as money management and financial planning.