Banks Technological Advancement and Financial Inclusion in Nigeria

Abstract

This study examined the impact of deposit money banks technological advancement on financial inclusion in Nigeria covering the period 2013Q1 to 2019Q4. Data were sourced from the Central Bank of Nigeria (CBN) Statistical bulletin 2020. Data collected were interpolated and pre-estimation tests done using  Augmented Dickey-Fuller(ADF) unit root and cointegration tests. The Error Correction Mechanism (ECM) was applied in  estimating the structural parameters of the model. The findings showed that POS and FD had negative effect on financial inclusion in Nigeria while other variables such as ATM, WP and MOP had positive impact.  The t-statistic and the probability values of the variables in the model showed that all the variables were statistically significant. The result of the Granger Causality test showed unidirectional causality flowing from financial inclusion to the use of Automated Teller Mathine (ATM). The results further showed that there was presence of causality flowing from financial inclusion to Automated Teller Machine. The paper also found that there no sign of causality between POS and FI, FI and WP, FI and MOP, and FI and FD. The researcher recommended that a sound policy that will enhance the performance of banking technological advancement should be made by the apex regulator of the Nigerian banking system.

Keywords: Banks; Financial Inclusion; Technological Advancement, Model; computer

DOI: 10.7176/EJBM/16-6-04

Publication date: July 30th 2024