The study sought to examine the effect of firm level factors on financial stability of commercial banks in Nigeria. The specific objectives were to determine the effect of capital adequacy, bank size, management efficiency and earnings ability on financial stability of commercial banks in Nigeria. Additionally, the study analyzed the mediating and moderating effects of market power and interest rate respectively on the relationship between firm level factors and financial stability of commercial banks in Nigeria. The propositions of buffer capital theory, market power theory, efficiency structure theory, liquidity theory of interest rates and financial intermediation theory were used in underpinning the relationship between the study variables. Positivism doctrine and causal research design were adopted. Panel data was used covering the period 2010 to 2017. Panel regression analysis was applied and it was established that from the selected firm level factors, only bank size and earnings ability had significant effect on financial stability of commercial banks in Nigeria. Hence, capital adequacy and management efficiency had insignificant effect on financial stability of commercial banks in Nigeria. Market power had no significant mediation effect on the relationship between firm level factors and financial stability of commercial banks in Nigeria. Interest rate had significant moderation effect on the relationship between firm level factors and financial stability of commercial banks in Nigeria. The study recommended that growing bank sizes should be supported by a more robust operational system devoid of bureaucracies and complexities. It was further recommended that earnings generated by banks should be sustained through prudent investments. The study recommends that in view of the prediction powers of interest rate, it should be set with caution in view of market and industry analyses so as to ensure congruency with macro-prudential policies. The study suggests that additional studies can further examine the effect of capital adequacy and management efficiency on financial stability of commercial banks in Nigeria in view of the insignificant effect established for these variables, which can be carried out using different methodology.

This research enhances the literature on bank capital structure by combining financial intermediation theory with technological innovation to analyse the impact of FinTech adoption and liquidity management on leverage choices in South African banks. Utilising panel data spanning 2015 to 2024 and applying the Generalised Method of Moments (GMM) to tackle endogeneity and dynamic persistence, the research presents new findings from an overlooked emerging market setting. The results show a diverse effect of technology on leverage. Conventional banking systems, represented by automated teller machines (ATMs), show a positive relationship with the total debt ratio (TDR), suggesting a capital-intensive nature of tangible assets. Conversely, digital technologies such as mobile banking and a composite FinTech Index display a notable negative correlation with leverage, indicating that digital transformation improves efficiency, strengthens internal funding capacity, and reduces dependence on external debt. Moreover, increased liquidity levels are negatively correlated with leverage, suggesting that well-capitalised banks with robust liquidity rely less on debt funding. By examining FinTech and liquidity dynamics, the research contributes to both theory and practice, emphasising digital innovation as an alternative to external funding and stressing the importance of sound liquidity management amid evolving regulatory environments such as Basel III.

This study investigates the complex interrelationships between business innovation, financial management, banking services, and financial performance among fashion industry MSMEs in Indonesia. This study employed a quantitative research design with both descriptive and explanatory components. Drawing on data from a comprehensive sample across key regions, we employ structural equation modeling to examine both direct relationships and mediation effects. Our findings reveal that business innovation functions as the predominant driver of financial performance through dual mechanisms: a strong direct pathway and an indirect pathway mediated by banking services. Contrary to theoretical expectations, financial management practices primarily enhance performance through banking service utilization rather than through direct effects. Banking services emerge as a crucial mediating mechanism that translates organizational capabilities into enhanced financial outcomes. These results extend resource-based theory by illuminating specific pathways through which organizational capabilities generate competitive advantage and enhance financial intermediation theory by demonstrating that intermediation benefits are contingent on firm-level capabilities. For practitioners and policymakers, our study underscores the strategic importance of innovation development while highlighting how financial management practices can optimize external financial relationships. The research contributes to both theoretical advancement and practical understanding of capability-performance linkages in emerging economy contexts.

This study examined the effect of business finance models on the performance of small and medium enterprises (SMEs) in Bungoma Municipality, Kenya, with specific attention to the influence of traditional bank financing, digital/mobile lending platforms, microfinance institutions, and informal finance models on SME performance metrics. The study drew on the pecking order theory and financial intermediation theory. A descriptive cross-sectional design was adopted. The target population comprised 2,450 registered SMEs across six strata in Bungoma Municipality. A sample of 331 SME owner/managers was drawn using stratified random sampling, ensuring proportional representation. Structured questionnaires were the primary data collection instrument, with reliability confirmed (Cronbach's α = 0.87). Descriptive statistics, Pearson correlation, and multiple regression analysis were applied using SPSS version 29. Digital/mobile lending platforms were the most utilised finance model (68.3%), followed by microfinance institutions (45.2%), informal finance (42.1%), and traditional bank financing (28.4%). Digital lending showed the strongest positive correlation with composite SME performance (r = 0.62, p < 0.001), particularly sales growth (r = 0.58) and business expansion (r = 0.54). The regression model explained 47% of variance in SME performance (R² = 0.47, F = 28.6, p < 0.001), with digital lending (β = 0.34, p < 0.001) and microfinance (β = 0.28, p < 0.01) the strongest predictors. Traditional bank financing's most distinctive contribution was its correlation with asset acquisition (r = 0.51), reflecting the longer loan tenors and larger loan sizes that banks offer. SMEs utilising multiple financing models simultaneously outperformed single-model users across all performance dimensions. High interest rates on digital loans (71.3%), stringent collateral requirements (58.7%), and limited financial literacy (52.4%) were the most frequently cited challenges. Qualitative findings further documented aggressive debt-recovery practices by digital lenders, including unsolicited contact with borrowers' social networks, reported as widespread despite regulatory prohibition. The study concludes that digital lending has become the structural backbone of SME financing in Bungoma Municipality, not because it is optimal, but because collateral requirements exclude the majority of SMEs from formal bank financing. Its dominance is a symptom of a financing gap rather than evidence of an efficient market outcome. Microfinance institutions represent a comparatively underutilised but high-impact intermediary, particularly for firms in the small enterprise band. The superior absolute performance of bank financing users reflects selection bias rather than product quality, since banks approve credit primarily for already-established firms. The multi-model utilisation pattern among 42.3% of respondents confirms that combining complementary financing instruments produces superior outcomes to dependence on any single model. The study recommends that the Bungoma County Government establish a Business Finance Information Hub providing SME owners with transparent, regularly updated comparisons of all finance models operating in the county.

This study investigates the extent to which the quality of financial reporting practices among Small and Medium Enterprises (SMEs) in Nigeria affects their access to local currency financing. Despite being key drivers of employment and inclusive economic growth, Nigerian SMEs face persistent challenges in accessing credit largely due to inadequate financial disclosure and accounting practices. Anchored on the pecking order theory and financial intermediation theory, this study adopts a cross-sectional survey design covering the period from 2019 to 2023. The population comprises all registered SMEs operating in Lagos, Abuja, and Kano as listed in the SMEDAN 2023 directory, from which 400 SMEs were randomly selected using stratified sampling techniques to ensure sectorial representation. Primary data were collected through structured questionnaires, while interviews were conducted with 20 credit officers from commercial and development finance banks. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis. Results reveal that compliance with basic accounting standards, maintenance of proper financial records, and external audit assurance significantly enhance SME access to local currency financing. The study recommends simplified reporting templates, mandatory bookkeeping training, and policy incentives to promote financial transparency among SMEs and improve their creditworthiness.

We study the dynamics of firm-bank relationships following corporate acquisitions using a novel firm-bank data set for 23 European countries over 2008–2014. Our data allows us to track changes in both firm ownership and bank relationships over time. To examine the effect of ownership change on bank relationships, we combine a difference-in-differences approach with matching. We find that the majority of acquisitions are associated with substantial changes in bank relationships of target firms. Acquiring firms actively change the composition of these relationships, incorporating banks with superior knowledge of the target’s local market or with expertise in the target’s industry. This reallocation appears to mitigate informational frictions associated with the acquisition. Our findings are consistent with theories of financial intermediation that emphasize the role of banks in accumulating and providing soft information about the real economy. This paper was accepted by Bo Becker, finance. Funding: This work used the Dutch national e-infrastructure with the support of the SURF Cooperative [Grant EINF-9542]. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.04231 .

This article presents a comprehensive study of the role of household savings in the formation of banks’ financial resources in the context of current challenges. A review of existing academic approaches has shown that various schools of thought including classical, neoclassical, Keynesian, post-Keynesian, behavioural, monetarist, institutional, as well as theories of financial inclusion, financial intermediation and economic growth, recognise household savings as an important component of banks’ resource base, a source of investment resources and a factor in ensuring financial stability. It has been established that, within classical scientific approaches, household savings are interpreted primarily as a quantitatively measurable resource, the formation of which is determined by income levels, interest rates and general macroeconomic conditions. However, in the current environment of high uncertainty, the growing role of behavioural factors and information shocks, such approaches are insufficient to explain trends in the dynamics of banking institutions’ deposit base indicators. The author justifies the appropriateness of using an institutional-behavioural approach, which allows savings to be viewed as an active component of the financial system, sensitive to changes in the institutional environment, as well as to the level of trust, expectations and subjective perception of risk by households. Within the framework of this approach, it is proposed to expand the functional interpretation of household savings by identifying three new functions: behavioural-institutional, regulatory-signalling and countercyclical. It has been demonstrated that these functions help to explain the mechanism by which socio-economic expectations are transformed into parameters of financial stability for banking institutions, as well as to reveal their role in shaping the behavioural liquidity of banks. Based on the proposed approach, this article develops a concept for an institutional-behavioural strategy to mobilise the public’s financial resources, which involves combining financial instruments with mechanisms for managing depositors’ expectations, trust and behavioural responses. A number of second-order strategies are proposed, which correspond to the behavioural-institutional, regulatory-signalling and countercyclical functions of savings and are aimed at ensuring the structural flexibility, adaptability and stability of banks’ deposit bases. It is expected that the implementation of these strategies, in conjunction with traditional methods of attracting funds, will reduce the behavioural volatility of deposit flows, increase the predictability of banks’ liability structures and build a core of loyal depositors. It is emphasised that the transition of banking institutions from a reactive to a preventive model of financial resource management will enhance their financial resilience and ability to withstand macroeconomic shocks.

Micro, small, and medium enterprises (MSMEs) in North Sumatera facepersistent financing constraints that limit their contribution to regional economiccompetitiveness. Despite the proliferation of peer-to-peer (P2P) lending andsecurities crowdfunding platforms, pure debt and pure equity models exhibitstructural limitations: P2P lending suffers from high default risk and informationasymmetry, while equity crowdfunding imposes excessive dilution costs andvaluation challenges for early-stage MSMEs. This conceptual paper proposes ahybrid debt-equity funding model that integrates complementary financinginstruments through digital platforms, addressing these limitations by optimizingrisk allocation, reducing information frictions, and matching investor preferencesto firm lifecycle stages. Grounded in Capital Structure Theory, FinancialIntermediation Theory, Information Asymmetry frameworks, and AgencyTheory, the model demonstrates theoretical superiority over single-instrumentapproaches. North Sumatera serves as a critical testing ground due to itssubstantial MSME sector (contributing 57.8% to regional GDP), documentedcapital access barriers (only 15.2% of MSMEs receive bank loans), andsupportive regulatory environment under Indonesia's OJK fintech framework.Through conceptual development and policy analysis, this study presents atheoretically robust framework, comparative performance analysis, andimplementation roadmap. The hybrid model offers a scalable solution to bridgethe MSME financing gap in emerging markets, with implications for financialinclusion policy and platform governance

Research Aims: This study aims to examine how the COVID-19 pandemic affects bank resilience and analyzes the role of government stimulus in moderating the impact of the COVID-19 pandemic on bank resilience, particularly related to loan growth and non-performing loans (NPLs) of MSME. Design/methodology/approach: This study employs a quantitative explanatory approach utilizing the Generalized Least Squares (GLS) method on panel data from 73 conventional commercial banks in Indonesia, observed quarterly over the 2020–2023 period. The moderation analysis is conducted through a mean difference test for MSME loan growth, complemented by a descriptive mean comparison analysis for MSME NPLs. Research Findings: Empirical findings reveal that COVID-19 significantly reduced MSME loan growth and increased non-performing loans (NPLs). Nonetheless, government stimulus through loan restructuring effectively mitigated these adverse effects, while the fund placement program in banks exhibited limited and delayed influence on MSME credit expansion during the pandemic, highlighting differing policy effectiveness levels. Theoretical Contribution/Originality: This study contributes to enrich financial intermediation theory by providing empirical evidence on the impact of the COVID-19 pandemic on banking resilience in Indonesia and the moderating role of government stimulus. The findings offer theoretical insights and policy implications for strengthening financial stability during and after crises. Keywords: Fiscal Stimulus, Bank Resilience, MSME NPL, COVID-19, Intermediation Function.

This systematic literature review (SLR) investigates the nexus between financial inclusion and green economic growth, synthesizing evidence from 60 Scopus-indexed studies published between 2015 and 2025. The review adopts a thematic approach, grounded in theories such as Sustainability Transition Theory, Institutional Theory, and Financial Intermediation Theory; to explore how inclusive financial systems contribute to environmental sustainability and low-carbon economic development. The findings reveal that financial inclusion promotes sustainability and green economic growth by enhancing access to capital for eco-friendly investments and supporting the adoption of renewable energy. Fintech emerges as a pivotal driver, facilitating the development of green finance through innovation, increased financial efficiency, and broader financial accessibility. Likewise, financial literacy plays a vital role, empowering individuals and firms to make informed, environmentally conscious financial decisions and investments. However, the relationship between financial inclusion and carbon emissions is found to be mixed and context-dependent. While digital financial inclusion can reduce emissions by fostering green innovation, unregulated financial expansion may contribute to environmental degradation, particularly in carbon-intensive sectors. This review identifies research gaps, including limited geographic diversity, lack of standardized metrics, and under-explored policy dimensions. It calls for more interdisciplinary, context-sensitive, and policy-relevant research to fully understand and leverage the potential of financial inclusion in accelerating the transition toward a green economy.

This study examines the influence of prudential regulatory requirements on the financial stability of listed commercial banks in Tanzania. The study was guided by the financial intermediation theory, emphasizing the role played by financial institutions in reducing transaction costs as well as managing risks and improving the efficiency of operations. Using panel data analysis, the study focuses on three key regulatory measures, capital adequacy, liquidity, and asset quality requirements, while also considering bank-specific characteristics such as size and age. Using quarterly panel data for seven listed commercial banks for nine years, the study employs generalized least squares (GLS) to estimate the relationship between prudential indicators and financial stability. The results reveal that both capital adequacy and liquidity requirements have significant negative effects on financial stability, suggesting that in a developing financial system like Tanzania’s, these rules may impose costs that erode profitability and reduce resilience. Asset quality requirements show a positive but statistically insignificant effect, indicating weak enforcement or delayed impact on stability. The study reveals that larger and older banks exhibit greater stability, underscoring the significance of scale and experience in fostering resilience. These findings underscore the need for context-specific prudential frameworks that balance regulatory safeguards with the realities of local banking markets, ensuring that compliance enhances rather than undermines stability. The study provides important policy insights for regulators and bank managers seeking to strengthen the Tanzanian financial system in line with both domestic needs and international standards. Specifically, there is a need for Tanzania’s prudential regulation to be more context-specific and proportionate by adopting flexible, countercyclical capital and liquidity frameworks and strengthening enforcement of asset quality and risk management so that oversight enhances long-term financial stability without undermining efficiency and growth.

This study investigated the impact of liquidity risk on the profitability of listed Deposit Money Banks (DMBs) in Nigeria from 2015 to 2024, a period characterized by significant economic volatility and policy regime shifts. This study was anchored on the loanable fund’s theory, the theory of financial intermediation, and the trade-off theory. The variables of this study are liquid assets to total deposit ratio (LATDR) cash reserve ratio (CRR) and net interest margin (NIM). Utilizing an ex-post facto research design, a census sampling of all thirteen listed DMBs was employed, resulting in a balanced panel of 130 bank-year observations. Data were analyzed using the fixed effects regression model, with diagnostics confirming the model's robustness. The finding showed a statistically significant negative relationship between liquidity proxies and profitability. Specifically, a 1% increase in LATDR and CRR led to a 0.167% and 0.086% decrease in NIM, respectively. This indicated that internal liquidity management (LATDR) exerts a more pronounced drag on profitability than the external regulatory requirement (CRR). This study concluded that a significant trade-off exists between liquidity management and profitability in the Nigerian banking sector. This study recommended that bank managers strategically optimize their liquidity buffers rather than merely hoarding liquid assets, and that regulators should consider the profitability implications of aggressive CRR policies to foster a stable yet growth-conducive banking environment.

The operational effectiveness of Islamic Rural Banks in Indonesia is essential because inefficient financial intermediaries impede inclusive growth, restrict access to credit that complies with Shariah, and erode public confidence. The study's objectives are to assess the Islamic Rural Banks’ financial performance in West Java, Indonesia, and examine how efficiency levels influence specific financial performance measures. The methodology comprises two phases. The first phase measures efficiency using multiple inputs, including, operating expenses, fixed assets, inventory, total deposits, and total assets, alongside outputs such as profit-sharing financing, receivables, fund distribution income, and other operating income. The second phase employs Tobit regression to evaluate the impact of key financial ratios Non-Performing Financing (NPF), Return on Assets (ROA), Operating Expenses to Operating Income Ratio (BOPO), and Financing to Deposit Ratio (FDR) on efficiency scores. Findings indicate that seven of ten Islamic Rural Banks consistently achieved optimal efficiency (DEA score = 1), while three institutions exhibited persistent inefficiencies across various inputs and outputs. Tobit analysis reveals that ROA, BOPO, and FDR have significant positive effects on efficiency, whereas NPF is not statistically significant. The results highlight the importance of cost control and effective fund intermediation in enhancing performance. The study advances the application of Financial Intermediation Theory in Sharia-compliant rural banking by integrating ethical considerations into technical efficiency measurement. Limitations include geographic focus, data quality variability, and the exclusion of qualitative performance measures.

The rise of financial technology (Fintech) has fundamentally altered the dynamics of accessing credit in emerging markets, providing new ways to close the gap in financial inclusion. This paper examines the way in which Fintech providers – scaling digital identity systems, AML, alternative credit scoring, and mobile-based interfaces – are reconfiguring access to credit in underserved markets. Using a qualitative approach, it integrates a structured review with comparative case analysis of Kenya, India, and Nigeria, synthesizing peer reviewed and grey literature to assess the potential of Fintech in democratizing credit outcome using peer-reviewed evidence as well as institutional reports. The results show that Fintechs reduce overall cost, coverage, and time to deliver credit among especially informal workers, women, and microenterprises. Benefits, however, are very much dependent on enabling conditions such as legal and regulatory preparedness, digital infrastructure, and legal and security safeguards. It is theoretically based on Financial Intermediation Theory and Innovation Diffusion Theory, and provides a two-fold explanation for both the disintermediation of traditional credit as well as behavior mechanisms leading to Fintech usage. Policy and pragmatic considerations highlight the importance of adaptive governance regimes, ethical data stewardship, and multi-actor collaboration to ensure responsible scaling. It is also consistent with a number of Sustainable Development Goals (SDGs) – such as poverty reduction, gender equality, and economic growth. This research works as an empirically informed and context-specific analysis for the debate on inclusive digital finance and provides strategic implications for policy-makers, Fintech developers and development practitioners aspiring to nurture successful credit ecologies in the Global South.

This study investigates the dynamic linkages between financial sector development, financial inclusion, credit supply, and economic growth in East Africa, drawing on financial intermediation theory, endogenous growth and finance–growth nexus models. It examines how improved financial infrastructure enhances credit access and inclusion, thereby influencing long-term growth. Using annual panel data from 1990 to 2023 for Burundi, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, and Uganda, composite indices for financial development, credit supply, and inclusion were constructed via Principal Component Analysis. Dynamic heterogeneous panel models, including pooled mean group, mean group, and dynamic fixed effects were applied, with robustness checks using fully modified ordinary least square, canonical cointegration regression, feasible generalized least square and Dumitrescu and Hurlin causality tests. Results show financial development significantly boosts inclusion and credit in the long run, with credit supply positively linked to growth, though high lending rates constrain expansion. Causality test reveals a long-run unidirectional link from financial development indicators to growth, with no short-run effects. Policy implications highlight deepening reforms, raising incomes, and regulating interest rates and public spending to foster inclusion and sustainable growth, while addressing regional disparities and structural barriers.

The attainment of Universal Health Coverage (UHC) remains difficult in most low- and middle-income countries (LMICs) due to gaps in health funding, high out-of-pocket spending and further worsening due to recent donor cuts. Existing literature predominantly focuses on traditional sources which include government budgets, donor aid, social health insurance, and household payments while the role of commercial banks as strategic health system financiers remains largely untapped beyond Corporate Social Responsibility (CSR) activities. This perspective examines how commercial banks can provide innovative solutions and utilize their untapped resources to become strategic partners in health financing which can be harnessed towards attaining UHC. Anchored in Financial Intermediation Theory and the World Health Organization's health financing framework, the paper reviews evidence from peer-reviewed literature, policy documents, and illustrative country experiences. Commercial banks possess significant liquidity, risk-assessment capacity, and extensive networks that can be potentially leveraged through health-targeted savings and insurance products, ESG-aligned health bonds, de-risked lending to health SMEs. Structured public-private partnerships can further improve health outcomes while maintaining profitability. Empirical examples from Nigeria and other LMICs demonstrate the feasibility of these approaches. The involvement of commercial banks in health financing involves the risk of equity concerns (urban bias, over-indebtedness, technicality of the products and profit-equity alignment), especially in weak regulatory context while PPPs can carry political undertones with higher political risks. Commercial Banks and policy makers should promote health focused and inclusive products with literacy support, mobilize capital through bonds/guarantees, expand health SME credit, leverage PPPs, and monitor outcomes to mitigate risk. The integration of commercial banks into UHC as strategic partners can bridge financing gaps, improve health access, and strengthen health system resilience in LMICs, provided supportive regulation, ethical frameworks, and contextual adaptation guide their engagement.

Abstract Digital banking is emerging as a transformative force in the global financial ecosystem. It’s contribution in reshaping how individuals, businesses, and governments interact with financial services is highly significant. This conceptual paper explores the relationship between digital banking and sustainable economic growth, emphasizing its role in promoting financial inclusion and environmental sustainability. Drawing upon the Financial Intermediation Theory and the Sustainable Development Theory, the study develops a comprehensive conceptual framework that links digital innovation, inclusion, and sustainability. The paper is an effort to synthesize existing literature to demonstrate how digital banking enhances accessibility, efficiency, and transparency while supporting green finance initiatives. It also highlights the challenges of digital inequality, cybersecurity, and regulatory gaps that may hinder inclusive growth. The study concludes that digital banking, when guided by ethical governance and sustainability principles, can serve as a catalyst for inclusive and long-term economic development.

The study examined the impact of financial inclusion on poverty reduction among small and medium-sized enterprise (SME) owners in Tanzania. Specifically, its purpose was to evaluate the effects of access to financial institutions, savings accounts, loan services, and automated teller machines (ATMs) on poverty alleviation outcomes. Additionally, the study has investigated the moderating role of digital capabilities–including digital infrastructure, information management, analytics, operational efficiency, and transformational capacity–in clarifying the relationship between financial inclusion and poverty reduction. The study adopted a cross-sectional explanatory research design grounded in a deductive approach and employed survey techniques for data collection. The multistage, stratified, and simple random sampling procedure was used to select a sample of 381 SME owners across five regions: Dar es Salaam, Mwanza, Arusha, Mbeya, and Mtwara. Primary data were collected using a structured questionnaire. The collected data were analyzed using descriptive statistics, Ordinary Least Squares (OLS) regression, and hierarchical regression analysis. Findings: Financial inclusion–measured by access to financial institutions, savings accounts, loan services, and ATMs–had a positive and statistically significant effect on poverty reduction among SME owners. Furthermore, digital capabilities were found to play a positive and significant moderating role in the relationship between financial inclusion and poverty reduction, strengthening the observed effects. However, among the financial inclusion components, only savings accounts demonstrated significant interaction effects with digital capabilities. Practical Implication: Owners of SMEs are encouraged to increase their use of savings accounts, loan services, and ATMs to enhance the effectiveness of financial inclusion initiatives in achieving poverty-reduction outcomes. Policymakers should strengthen financial inclusion by promoting the accessibility, availability, and reliability of financial institutions and related financial services, including savings accounts, loan facilities, and ATMs. Furthermore, both SME owners and financial institutions should prioritize the development and integration of digital capabilities to improve the efficiency and overall impact of financial inclusion strategies in alleviating poverty. Social Implications: Society should actively promote and utilize the key components of financial inclusion–namely, financial institutions, savings accounts, loan services, and ATMs–as mechanisms to advance poverty reduction efforts. Moreover, the adoption and use of digital financial services should be encouraged to further enhance the effectiveness of financial inclusion in alleviating poverty among SME owners in Tanzania. Originality: This study is the first to integrate Technology Acceptance Theory with Financial Intermediation Theory to provide a comprehensive explanation of how financial inclusion and digital capabilities jointly contribute to poverty reduction in developing countries. JEL Classification: G21, O16, L26, O55.

This study investigates the relationship between account ownership and inequality rates in Nigeria from 2000 to 2024, employing Financial Intermediation Theory and Gender and Development (GAD) Theory as its conceptual frameworks. Financial Intermediation Theory explains how financial institutions catalyze economic growth, while GAD Theory addresses gender disparities and their socioeconomic implications. By integrating these perspectives, the research scrutinizes how financial inclusion, particularly through account ownership by males, females, and the total population, influences inequality levels within Nigeria. Utilizing an ex post facto research design, this study analyzes secondary, time-series data sourced from the World Bank’s World Development Indicators. The Autoregressive Distributed Lag (ARDL) model is employed to estimate the effects of account ownership on inequality over the 25-year period. Findings reveal that female account ownership correlates positively and significantly with inequality (coefficient = 0.35, p = 0.00), suggesting that increased female financial inclusion alone may not reduce inequality without addressing structural barriers. Conversely, male account ownership (coefficient = -0.07, p = 0.00) and total population account ownership (coefficient = -0.16, p = 0.00) exhibit significant negative impacts on inequality, indicating that broader financial access helps reduce disparity. The study concludes that account ownership has nuanced effects on inequality, highlighting the need for gender-sensitive policies that promote inclusive financial literacy and access.

Subject. The article examines the evolution of scientific concepts of financial intermediation as a key institution of the modern economy. The study focuses on theoretical approaches to explaining the nature, functions, and role of financial intermediaries in resource allocation, risk reduction, and maintaining financial system stability. Objectives. The aim is to systematize and analyze the evolution of financial intermediation theory—from classical models to modern concepts—considering their continuity and the influence of external economic and technological factor. Methods. The methodological basis includes comparative analysis, institutional and functional approaches, and elements of empirical generalization. Results. We identified and compared key criteria for evaluating theories of financial intermediation, established the continuity between major theoretical approaches, enabling to trace changes in views on the nature and functions of intermediaries. Furthermore, we described mechanisms of asset and risk transformation. The study also addresses whether decentralized finance constitutes an independent theoretical paradigm or continues existing approaches. The results are applicable for improving research in finance and formulating strategies for regulation and sector development. Conclusions. The functional content of financial intermediation has expanded considerably and is integrated into modern economic models. Modern theories view intermediaries as system-forming elements that ensure the stability and development of the financial system.