The Impact of Electronic Banking on Financial Inclusion in Nigeria

Abstract

The concept of financial inclusion has continued to gain global acceptance since it was identified as one of the key drivers of inclusive economic growth and development. Financial inclusion is one of the objectives of the Central Bank of Nigeria’s cashless policy introduced in Nigeria in the year 2011. In the light of this, the research seeks to examine the impact of electronic banking on financial inclusion in Nigeria. The study used the total number of automated teller machines and point-of-sale devices in Nigeria as proxies for electronic banking and the proportion of banked adult population to total bankable adult population in Nigeria as proxy for financial inclusion. The study adopted correlational and expost facto research designs with the aid of computer-based multiple regression analysis. It was observed that automated teller machines do not significantly impact financial inclusion while point-of-sale devices significantly impact financial inclusion in Nigeria. In line with the findings of the study, it is recommended that deposit money banks should remove the bottlenecks associated with the use of their automated teller machines and strive to meet international best practice. Also, more point-of-sale devices should be readily available and easily accessible by customers.