Analysis of the Effect of Financial Technology (Fintech) on Financial Inclusion in Nigeria
Abstract
This study examined the analysis of the effect of financial technology (FinTech) on financial inclusion in Nigeria from the period of 1993 to 2022 (30years). In order to evaluate the effect of financial technology on financial inclusion in Nigeria, the following measures financial technology, namely; Automated Teller Machine (ATM), Point of Sale (POS), Internet Banking (INTB), Nigeria Interbank Settlement System (NIBSS) and Nigeria Electronic Fund Transfer (NEFT) in relation to financial inclusion proxied with Number of Bank Branches (NBB) in Nigeria. The CBN Statistical Bulletin, CBN Annual Report and CBN Bank Supervisory Annual Report from 1993-2023 were used to acquire data for the research. Descriptive statistics, correlation analysis, diagnostics tests, unit root test, and multiple regression analysis were used to assess the research hypotheses. Based on the results of the previous chapter, ATM has a negative significant effect on NBB, POS has a positive significant effect, INTB has a negative insignificant effect on NBB, and MOB has a positive significant effect on NBB. NIBSS has a positive significant effect on NBB with a p-value (sig. value) of 0.0000, while NEFT has a negative significant effect on NBB with P-value of 0.0540. The study recommended that managers of financial institution should from time to time train customers with regard to ATM, its benefits, risk exposure, physical and electronic security to avoid financial loss in the hands of hackers, trainings should be held for bank staff in short periods to acquaint them with modern developments of the sophisticated technology in changing times to improve the financial inclusion in Nigeria.
Keywords
FinancialTechnologyAutomatedPoint of SaleInternetBanking (INTB)
References
Abiola A. B., Oluwaseye, E. O., Lawal, A. I., & Isibor, A. A. (2020). Financial technology, financial inclusion and MSMES financing in the south-west of Nigeria. Academy of Entrepreneurship Journal, 26(3), 1528-1586. Abor, J. Y., Amidu, M., & Issahaku, H. (2018). Mobile telephony, financial inclusion and inclusive growth. Journal of African Business, 19(3), 430-453. Agbogun, O. E., and Ehiedu, V. C. (2022). Trade policy drivers and economic performance of OPEC Member States. International Journal of Academic Accounting, Finance, and Management Research, 6(8), 109-118. Aimomani, A. A., & Alomari, K. F. (2021). Financial technology (Fintech) and its role in supporting the financial and banking services sector. International Journal of Academic Research in Business and Social Sciences, 11(8), 1793–1802. Anarfo, E. B., Abor, J. Y., Osei, K. A., & Gyeke- Dako, A. (2019). Monetary policy and financial inclusion in Sub-Sahara Africa: A panel VAR approach. Journal of African Business, 20(4), 549-572. ANUKU, C.E.O and EHIEDI, Victor Chukwunweike (2007). Financing Micro-Industries in Nigeria for Sustainable Development. Journal of Public Policy Alert/ Association for Public Policy Analysis (APPA)/ Aba. Abia State. Pp.75-89. Vol. 1(1) Chen, W., Yuan, X., & Gang, J. (2021). Financial inclusion in China: An overview. Frontiers of Business Research in China, 15(4), 1–21. Chinoda, T., & Mashamba, T. (2021). Fintech, financial inclusion and income inequality nexus in Africa. Cogent Economics & Finance, 9(1), 1-16. Chinoda, T., Kwenda, F., & McMillan, D. (2019). Do mobile phones, economic growth, bank competition, and stability matter for financial inclusion in Africa? Cogent Economics and Finance, 7(1), 1–20. Chirwa, T. G., & Odhiambo, N. M. (2018). Exogenous and endogenous growth models: A critical review. Comparative Economic Research, 63–84. Della-Peruta, M. (2018). Adoption of mobile money and financial inclusion: A macroeconomic approach through cluster analysis. Economics of Innovation and New Technology, 27(2), 154-173. Demir, A., Pesqué-Cela, V., Altunbas, Y., & Murinde, V. (2020). Fintech, financial inclusion, and income inequality: A quantile regression approach. The European Journal of Finance, 1– Ehiedu Victor C (2015). Impact of Interest Rate Deregulation on Corporate Financial Strategies (CFS) of Manufacturing Industries in Nigeria. Ph.D Thesis, Department of Accounting, Banking and Finance, Delta State University, Abraka, Nigeria Ehiedu, Victor Chukwunweike. (2021). Policy Options for Nigeria on Fiscal Responsibility. Journal of Finance, Governance and Strategic Studies. Collaborative Research (CORE) Associates. Faculty of Humanities, Management and Social Sciences. Federal University, Wukari. Taraba State. Nigeria. Pp. 19-34, 4(2) Ehiedu, Victor Chukwunweike. (2021). Minimum Rediscount Rate and Credit Creation by Deposit Money Banks in Nigeria. Nigerian. Journal of Financial Research/ Department of Finance and Banking. University of Port Harcourt. Pp. 80-93, 16(1) Ehiedu, Victor Chukwunweike. (2021). Determinants of Deposit Accumulation Strategies of Deposit Money Banks (DMBs) in Nigeria. African Journal of Accounting, Finance and Marketing/ University of Port Harcourt Business School. Pp. 32-54, 5(1) Ehiedu, Victor C and Ogbeta, Mercy. (2014). An Investigation into the Internal Control System in the Banking Industry (A Case of Some Selected Banks in Asaba, Delta State. European Journal of Business and Management. ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online). International Institute for Science, Technology & Education, UK. Pp. 149-155, 6(9) Ehiedu, Victor C and Osiegbu P.I. (2014). Capital Structure and Performance Evaluation in Manufacturing Sector: A Case Study of Selected Quoted Companies in the Nigerian Stock Exchange (NSE). Research and Journal of Finance and Accounting. ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online). International Institute for Science, Technology & Education, UK. Ehiedu, Victor C. (2014). The Impact of Liquidity on Profitability of Some Selected Companies. The Financial Statement Analysis (FSA) Approach. Research and Journal of Finance and Accounting. ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online). International Institute for Science, Technology & Education, UK.. Pp. 81-90. 5(5) Ehiedu, Victor C, (2022). External Debt (ED) and Growth Nexus (GN) in Nigeria. International Journal of Academic Management Science Research (IJAMSR)/. Academic Research World (IJARW). Pp. 58-68, 6(7). Ehiedu, Victor C. (2022). Monetary Jeopardy (MJ) and Nigeria’s Deposit Money Bank Performance (DMBP) Relationship: ARDL Approach. International Journal of Advanced Economics P-ISSN: 2707-2134, E-ISSN: 2707-2142 DOI: 10.51594/ijae.v4i8.409 Fair East Publishers. Pp. 180-198, 4(8) EHIEDU Victor C. (2023). Tax Returns and Development of Infrastructure: The Nigerian Experience. Journal of Xidian University. DOIhttps://doi.org/10.37896/jxu17.2/028. ISSN No. 1001-2400. University of Xidian Publications. Pp. 400-412. 17(2) EHIEDU Victor C. (2023). Trade Drivers and Balance of Payment Equilibrium in Nigeria: Pre and Post Covid-19 Era. Journal of Xi’an University of Architecture & Technology. . DOI: https://doi.org/10.37896/JXAT15.3/31756. ISSN No: 1006-7930. Xi’an University of Architecture & Technology. Pp. 77-96. 15(3) EHIEDU Victor C. (2023). Financial Innovation (FIs) and Performance of Deposit Money Banks (PMDBs) in Nigeria. Innovations. 19650256 (E) 12674982(P). 62 Rue Pierre Motte. Saint-Dizier. Champagne-Ardenne. France 44522. Innovations Publications. Pp. 573- 72(03) EHIEDU Victor C and Toria Gladys, (2022). Audit Indicators and Financial Performance of Manufacturing Firms in Nigeria. Linguistics and Culture Review. Pp. 14-41 6(S1). https://doi.org/10.21744/lingcure.v6nS1.1887. (Special Issue on Economics, Accounting and Management EAM). American Linguist Association. New York. USA. Ehiedu, V.C. and Obi, C.K, (2022). Efficient market hypothesis (emh) and the Nigerian stock Exchange in the midst of global financial crisis. International Journal of Academic Management Science Research (IJAMSR)/. Academic Research World (IJARW). Pp. 263- 273 Ehiedu V.C and Imoagwu C.P, (2022). Effect of corporate diversification strategies on the financial performance of industrial goods in Nigeria. International Journal of Applied Research in Social Sciences P-ISSN: 2706-9176, E-ISSN: 2706-9184 DOI: 10.51594/ijarss.v4i8.390 Fair East Publishers Ehiedu Victor C, and Imoagwu Chika Priscilla, (2022). Firm specific determinants and its implication on listed oil and gas firms profitability in Nigeria. International Journal of Advanced Economics P-ISSN: 2707-2134, E-ISSN: 2707-2142 DOI: 10.51594/ijae.v4i7.389 Fair East Publishers Ehiedu V.C. (2022).Corporate Finance Alternative and Shareholders’ Value Creation in Nigeria. International Journal of Academic Accounting, Finance & Management Research(IJAAFMR). Research (IJAAFMR). International Journals of Academic Research World (IJARW). Pp. 26-33, 6(6) Ehiedu, V. C. (2022). Analysis of micro prudential determinants of capital adequacy in deposit money banks. International Journal of Management & Entrepreneurship Research, 4(11), 398-415. Ehiedu, Victor C, (2022). Deficit financing (df) and sustainable growth (sg) in a small open economy. International Journal of Academic Accounting, Finance & Management/ Research (IJAAFMR). International Journal of Academic Research World (IJARW). Pp. 1-96(7) Ehiedu Victor C. and Brume-Ezewu, Christiana (2022). Corporate Attributes and Environmental Social And Governance (Esg) Reporting Among Listed Nigerian Firms: A Sector-Based Evaluation. International Journal of Management (IJM) Article ID: IJM_13_14_041 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IA
More Articles from IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH
Effect of Monetary Policy on Profitability of Deposit Money Banks in Nigeria
Author: Stephanie Nguhemen Gbande, Mike T. Soomiyol, Timothy Tyona, Gaius Msendoo Asombo
Examining the Impact of Corporate Social Responsibility on Financial Performance: Evidence from Small and Medium-Sized Enterprises in Hanoi
Author: Nguyen Mai Phuong
Cognitive Diversity and Performance of Deposit Money Banks in Nigeria
Author: 1Nwangwu, Okwudiri Iheanyi, 2 Pepple, Grace Jamie PhD
Banking Innovations and Industrial Sector Performance in Nigeria: Evidence from ARDL Model
Author: Peter Ngbede Ajam, Abiodun Edward Adelegan, Benson Emmanuel
Environmental Sustainability and Entrepreneurial Performance in Nigeria: A Case Study of Enugu State
Author: i, Azolike Nkiru Nkechi, ii, Okwor Emmanuel Ejimnkonye, iii, Eneaniofu Daniel Mmaduakonam