THE IMPACT OF ELECTRONIC BANKING CHANNELS ON THE FINANCIAL INCLUSION IN NIGERIA

Abstract

This study explores the role of technological tools in enhancing financial inclusion within the Nigerian banking sector. The rise of mobile payments, Automated Teller Machines (ATMs), and Electronic Fund Transfers (EFTs) is reshaping financial landscape, particularly in developing economies like Nigeria. This research utilizes the linear regression model to examine the relationship amid financial inclusion and adoption of these technological tools. The data collected from Nigerian banks reveal a positive correlation between financial inclusion and use of mobile payments, although ATMs and EFTs show limited statistical significance in driving financial inclusion. The study highlights the increasing importance of mobile payments, which provide easier access to financial services, particularly in underserved rural areas where the traditional banking infrastructure is lacking. The findings underscore the need for policies that prioritize the digital infrastructure and mobile financial services to expand access to banking & improve economic participation for unbanked populations. Moreover, while the role of ATMs & EFTs is acknowledged, their impact is hindered by technical challenges, including the network instability and insufficient cash availability. This study contributes to literature on financial inclusion by suggesting that mobile payments are a key driver for financial inclusion thereby offering practical recommendations for policymakers & financial institutions to foster broader financial access.