Effect of Digital Banking Platforms on Financial Inclusion in Nigeria: (2009-2023)
Keywords:
Digital banking platform, Financial inclusionAbstract
This study investigated the Effect of Digital Banking Platforms on Financial Inclusion in Nigeria (2009-2023), with focus on Automated Teller Machines (ATM), Mobile Banking (MOB), Internet Banking (INB), and Point of Sale (POS) transactions. Using annual data from 2009 to 2023 and employing the Robust regression analysis (M-estimation), the study examines how these digital payment options affect the number of account holders (NAH) as a proxy for financial inclusion. The study adopted the ex-post facto research design. The data sources are the Central Bank of Nigeria (CBN) Statistical Bulletin, Nigeria Inter-Bank Settlement System Plc (NIBSS), and the World Bank Data Bank. The diagnostic tests, including multicollinearity (VIF/TOV), Heteroskedasticity (Breusch-Pagan-Godfrey), and specification error (Ramsey RESET), confirm the reliability and validity of the regression model. Empirical results reveal that ATM and INB have significant positive effects on financial inclusion, while POS shows a significant negative impact. MOB shows a positive but insignificant effect. The study concluded that digital banking infrastructure particularly ATMs and internet banking plays a vital role in promoting financial inclusion. It recommends that banks and financial institutions should invest more in user-centered internet and mobile banking platforms with robust security and easy onboarding processes. Also, fintech and technology developers need to design digital financial tools that align with account ownership goals, particularly in underserved areas. This research contributes to the growing body of knowledge on financial technology by highlighting the role of specific modern payment systems in expanding access to formal banking in Nigeria
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