1.

Background to the Study

Poverty with its adverse effects have always had serious implication on global economic development.
However, with COVID-19 taking its toll on the world, causing deaths, sicknesses and economic despair
resulting to estimates that suggests that 49 million people will be pushed into extreme poverty in 2020 (World
bank, 2020), its relevance in global discourse has become apparently prominent. To reduce the vulnerability
to poverty, the global community has overtime deployed several mechanisms with a marked inclination
towards the pursuit of inclusiveness. The thrust of this predilection being that poverty does not exist because
of insufficient money in any economy, but rather exists because of inequality in the distribution of national
income. With this reasoning, measures of inclusiveness such as financial inclusion have continued to generate
a lot of research and policy attention.

Financial inclusion is defined as the availability of finance and financial services for all in fair, transparent
and equitable manner at an affordable cost. It also refers to the situation whereby basic banking services are
delivered at an affordable cost to all section of the society. These definitions summarily portray financial
inclusion as the incorporation of all citizens of a nation in formal banking transactions. The involvement of
the citizens in financial mainstream is expected to fuel investment, create jobs and stimulate growth.

In Nigeria, the government through the Central Bank of Nigeria has tried to achieve a financial inclusion as an
integral part for promoting sustainable and inclusive growth by formulating policies that are expected to
encourage country wide access to financial services at affordable cost particularly to the low income earner
and vulnerable group Olatunji, (2015). The intent of these policies and mechanisms is to reduce the number of
persons excluded from organized financial system by getting more people involved in the organized financial
system. These consistent attempts to sustain and deepen financial inclusion have included the deployment of
technological innovations in the financial sector.

1.2 Statement of the Problem

Financial technology, as observed by Villasenor, Darrell and Lewis (2015), has significantly influenced the
delivery of financial services. Villasenor, Darrell and Lewis further expounded that such technologies have
improved security and comfort in cash handling. However, the study posited that though technology may
have had a positive effect on quality of financial services, its effect on financial inclusion remains to be
adequately established.

The recent global focus is motivated by the increased recognition of the relevance of financial inclusion as an
important element of economic development consequently creating the need for concerted efforts to eliminate
or at least reduce obstacles and barriers to access to formal banking services. The extent to which financial
technology has facilitated financial inclusion especially in developing economies has therefore continued to
attract the attention of researchers.

According to the study by Radcliffe and Voorhies (2012), financial technology created an expansion of digital
payment platforms that have offered the opportunity to link poor people with providers of savings, credit, and
insurance products. In the same vein, Nyamongo and Ndirangu (2013), McKee, Kaffenberger and
Zimmerman (2015) claimed that financial technology has facilitated access for lower income earner with
deficient financial related services choices. Fanta and Makina (2019) also reported that technology fostered
both access to and usage of financial services thereby improving financial inclusion. The study specifically
identified the positive effect of internet access and Automated teller machines.
1.3 Objective of the Study

The overall objective of the study is to determine the role of technology on financial inclusion in Nigeria. The
specific objectives include the following:

i. To ascertain the role of internet banking on financial inclusion in Nigeria.

ii. To examine the role of Automated Teller Machines on financial inclusion in Nigeria.

iii. To assess the impact of Point of Sales on financial inclusion in Nigeria.

1.4 Research Questions

From the aforementioned objectives, the following research questions are formulated.
i. What is the role of internet banking on financial inclusion in Nigeria?

ii. What is the role of Automated Teller Machines on financial inclusion in Nigeria?

iii. What is the role of Point of Sales on financial inclusion in Nigeria?

1.5 Research Hypothesis:

The study tested the following the following hypotheses:

HO1: Internet banking does not have significant role on financial inclusion in Nigeria.

HO2: Automated Teller Machine does not have significant role on financial inclusion in Nigeria.

HO3: Point of Sales does not have significant role on financial inclusion in Nigeria.

1.6 Scope of the Study

The focus of this study is on the role of technology on financial inclusion in Nigeria. The study is a time
series study covering the period from 2011 to 2020. This includes the most current data available on the
variables understudied. Furthermore, the range of the years ensures the provision of sufficient data for the tool
of analysis chosen.

2. Conceptual Framework

2.1 Financial Inclusion

Raghuram Committee (2003) in India defined financial inclusion as the process of ensuring access to financial
services and timely and adequate credit where needed by vulnerable groups such as the weaker sections and
low income groups at an affordable cost. This definition clearly identified the focus of financial inclusion on
the vulnerable member of the society. It also captures ease of accessibility to credit. According to Akingbola
(2006) financial inclusion is the extension of the benefits of banking to the have-nots. The study further
explained that it simply means banks will offer a basic account to anyone who want to have. The concept of
financial inclusion explains how the financial excluded, unbanked and under-banked people in the society are
made to be accessible and uses the affordable, quality financial services and product in convenience manner
(CBN, 2009). Comprehensively, Ene (2019) outlined financial inclusion as a delivering of basic banking
services at an affordable cost to all sections of the society, especially the vast disadvantaged and low-income
groups who tend to be excluded from formal banking system. Financial inclusion requires that attention is
given to human and institutional issues, such as quality of access, affordability of products, provider
sustainability, and outreach to the most excluded populations.
Financial inclusion can therefore be defined as access to finance and financial services for all in fair,
transparent and equitable manner at an affordable cost.

Financial inclusion is widely considered as a right of all citizens to social inclusion, better quality of life and a
tool for strengthening the economic capacity and capabilities of the poor in a nation BCB, (2010). Such
submissions and obvious increasing importance of financial inclusion as a catalyst for economic growth and
development has motivated policymakers to view financial inclusion as catalyst for the achievement of
developmental goals by ensuring basic access to formal banking system for all citizens.

The Benefit of Financial Inclusion

Mohan (2018), noted that, once access to financial services improves, inclusion affords several benefits to the
consumer, regulator and the economy alike. The author explained that the establishment of an account
relationship can pave the way for the customer to avail the benefits of a variety of financial products, which
are not only standardized, but are also provided by institutions that are regulated and supervised by credible
regulators that ensures safety of investment. In addition, Mohan expounded that bank accounts can also be
used for multiple purposes, such as, making small value remittances at low cost and purchases on credit. In
summary, access to a bank account does provide the account holder not only a safer means of keeping his/her
fund but also provides access to use of other low cost and convenient means of transaction. For the regulator,
the transparency in the flow of transactions makes monitoring and compliance easier, while for the economy,
increased financial inclusion makes capital accumulation easier and more transparent. Mohan (2018)
concluded therefore that “the single gateway of a banking account can be used for several purposes and
represents a beneficial situation for all the economic units in the country.

Saddam (2019) stated that inclusion of this segment of the society would generate multiple economic
activities, cause growth in national output and eventually reduce poverty. The study attributed the rise in
poverty level in Nigeria to the challenges of financial exclusion. According to him, achieving optimal level of
financial inclusion in Nigeria means empowering 70.0 per cent of the population living below poverty level,
and this would boost growth and development. Financial inclusion also guarantees improved ability of poor
people to save, borrow, and make payments throughout their lifetime. Summarily, financial inclusion will
maximize the scale of economic activities that can be financed and hence, energizing the potentials for higher
economic growth.

Dimensions of Financial Inclusion

Okorie (2017) explained that financial inclusion extended beyond the regular form of financial
intermediation. The study stated that it involved:

i. Basic no frills banking account for making and receiving payments; ii. Savings products
suited to the pattern of cash flows of a poor household; iii. Money transfer facilities iv.
Insurance (life and non-life)
v. A platform for the mobilization of savings in the rural area through the diffused network of branches in all
parts of the society;

vi. The encouragement of banking habits among the largely agrarian rural population
vii. Provision of credit for the growth of the small scale industries and entrepreneurs and

viii. Promotion of balanced development and eventual reduction in the rural-urban migration

Issue and Challenges of Financial Inclusion

According to Moghalu, (2019), the dearth of access to financial services by billions of adults all over the
world poses serious challenges to global economic growth and development. The study noted that in Nigeria,
the major challenges within the general economic conditions have manifested in the forms of:

i. A major challenge in the financial inclusion process is how to ensure that the poor rural dwellers are
carried along considering the lack of financial sophistication among this segment of the Nigerian society
due to the general low level of financial literacy. Majority of the estimated 40 million financially
excluded Nigerians lack knowledge of the services and benefits derivable from accessing financial
services, while staff of the service providers often display lack of adequate understanding of the services
and so unable to educate effectively. In fact sub-optimal outcome from attempts to increase customer
awareness is reflected in the lack of appreciable progress in the literacy level of the populace. This has
remained a major impediment to the progress of the financial inclusion as a result process.

ii. There is also the challenge of increasing poverty. Though the economy has been reported to have grown
at an average of 7.0 per cent between 2009 and 2011, unemployment rate continue to increase while
progress on many of the poverty reducing Millennium Development Goals has been slow.

iii. The uncompetitive wage levels, particularly in the public sector where a large number belong to the low-
cadre means that these groups are excluded financially. Though their salaries are paid into the bank but
the personnel only visit the bank once in a month to collect their salaries with little or nothing to save

To surmount these challenges, in 2010, a national financial inclusion target was instituted having these five
priorities as being most crucial to increasing financial inclusion in Nigeria:

i. Create an enabling environment for the expansion of DFS.

ii. Enable the rapid growth of agent networks with nationwide reach.

iii. Harmonize KYC requirements for opening and operating accounts/mobile wallets on all financial
services platforms.

iv. Create an enabling environment to serve the most excluded.

v. Improve the adoption of cashless payment channels, particularly in government-to-person and person-to-
government payments
The major goal of this revised Strategy is to reduce the proportion of adult Nigerians that are financially
excluded to 20% in year 2020 from its baseline figure of 46.3% in 2010.

Financial Inclusion and Bank Performance

Financial inclusion via financial outreach (geographical and demographical), branch network penetration, and
banks can serve a wide range of customers potentially at a reduced cost once necessary infrastructures are in
place (Berger, Hassan & Zhou, 2010). While banks extend deposit facilities to a large pool of customers they
are able to attract a large number of retail deposits which are often cheaper than wholesale funding. Thus,
greater diversification in financial services associated with financial inclusion in mobilising deposits which
enhances bank performance (Ahamad & Mallick, 2017).

The greater financial inclusion is also likely to influence the overall level of lending opportunity of banks. By
reaching out to unbanked/under banked areas while extending small credits, banks can reduce distance and
build strong relationship with customers. The study of Deng and Elyasiani (2008) corroborate that distance
between lender and borrower undermines efficacy of banking services through intensification of asymmetric
information problem. Deng and Elyasiani (2008) also find that diversification across more remote areas (in
our case, the areas where financial services are hardly available) is associated with greater value
enhancement. Therefore, when banks diversify to regions where more unbanked population are located, they
are better able to understand the nuances of the local household/firm environment. This tends to reduce
default risk, cost of monitoring and enhance lender-borrower proximity, and relationship, which in turn
enhance banks return (Ahamad & Mallick, 2017)

Financial Inclusion and Economic Growth

Migap et al (2015), submitted that access to basic financial services in Nigeria would lead to increased
economic activities and employment opportunities for rural households, as more people get engaged in
economic activities, the disposable income of the rural household would rise, leading to more savings and a
robust deposit base for the bank, the multiplier effect will result in economic growth, this implies inclusive
growth. Hariharan and Marktanner (2012) concluded that financial inclusion has the potential to enhance
economic growth and development. They found a strong positive correlation between a country’s financial
inclusion and total factor productivity (TFP), implying that financial inclusion possesses the ability to create
capital. The study concluded that financial inclusion has the potential to increase the financial sector savings
portfolio, enhance efficiency of intermediation, and boost entrepreneurial activities which ultimately results in
economic growth.

According to Sarma and Pais (2010), a financially inclusive system helps in reducing the prevalence of
informal financial institutions that are in most cases exploitative, it encourages easy access to capital and
usage of the formal financial system by all segments of the economy. Financial inclusion enhances efficient
allocation of productive resources and in the process reduces the cost of capital. They concluded that
financially inclusive systems enhance efficiency and welfare by providing avenues for secure and safe
financial practices. Mbutor and Uba (2013) presented a simple model showing the impact of financial
inclusion on monetary policy in Nigeria between 1980 and 2012. The result from the study shows that
growing financial inclusion improves the effectiveness of monetary policy. Subbarao (2009) asserted that a
very few economies transit from an agrarian system to a post-industrial modern society without a broad-based
financial inclusion strategy. Financial inclusion will make it possible for governments to make payments such
as credit guarantee funds, subsidies and wages, directly to the bank accounts of beneficiaries through
electronic transfer channels. This will minimize transaction costs, pilferages, leakages and subsequently
eliminate corruption from the society.

2.2 Financial Technology (FinTech)

Financial technology is perhaps the best innovation that has happened in the banking industry in the 21 st
Century. It has made banking possible away from banking premises. Banking can now take place anywhere
using various electronic devices like mobile phones, automated teller machines, point-of-sale systems, smart
televisions, computers, tablets, among others. Today, different baking transactions can be completed or
initiated from different locations outside banking premises such as transfer and receipts of funds, balance
enquiry, purchase of 3airtime, payment of bills and account opening.

The concept of Financial Technology has been defined in many ways by researchers. Daniel (2005) defines
the concept as the delivery of information and services by banks to customers via different delivery platforms
that can be used on different electronic devices such as personal computers, mobile phones or digital
televisions with browsers or desktop software. As good as this definition appears, it does not take into
cognizance other platforms for financial technology such as automated teller machines, internet banking and
point-of-sales which are the focus of this study. Similarly, Abid and Noreen (2006) defined financial
technology as any use of information and communication technology and other electronic means by a bank to
conduct transactions and have interaction with stakeholders. This definition is however broader than that of
Daniel as it focuses on information and communication technology. Abid and Noreen also posited that
financial technology is a system of payment whereby transaction takes place electronically without the use of
cash. Ayman and Poul (2007) defined financial technology as provision of banking and financial services
with the help of telecommunication devices such as mobile telecommunication devices. Succintly, Basel
committee on Banking Supervision (2003) defined financial technology as nothing but e-business in the
banking industry. From these definitions therefore, financial technology may be viewed as a generic term for
describing delivery of banking services and products through electronic channels, such as mobile phones, the
internet, automated teller machines and point-of-sales facilities. In simple words, financial technology implies
provision of banking products and services through electronic delivery channels.

i. Automated Teller Machine (ATM)

Automated teller machine (ATM), also known as automated banking machine particularly in the United
States, is a computerized telecommunications device that provides the clients of a financial institution with
access to financial transactions in a public space without the need for a cashier, human clerk or bank teller
(DeYoung, 2005). According to Narteh (2015), over the last few decades, the automated teller machine as
part of self-service technology (SSTs) has emerged as a major channel for routing banking services to
customers.

ii. Point-of-Sale (POS)

Point of Sales (POS): A point of sale machine is the payment device that allows credit/debit cardholder to
make payment at sales/purchase outlet (Williams, Olalekan & Timothy, 2018). It involves a computer
terminal in retail stores that will transfer funds instantly from the bank deposit of the store in which customer
is making purchase.

iii. Internet Banking

Internet banking allows customers of a financial institution to conduct financial transactions on a

secure website operated by the institution, which can be a retail or virtual bank, credit union or
society. It also referred to as on-line banking. Banks increasingly operate websites and
transaction portals through which customers are able not only to inquire about account balances,
interest and exchange rates but also to conduct a range of transactions

2.3 Empirical Framework

Empirical literatures on the impact of financial technology on financial inclusion and related topics have
produced inconclusive arguments.
Christopher, Mike and Amy (2006) undertook a survey of four hundred and seven bank customers in thirty-
three organizations in Ekiti state of Nigeria. Their objective was to analyze the effects of availability of
financial technology facilities among other factors on the bank customers’ choice of a banking institution.
The study revealed that the availability of financial technology facilities such as automated teller machine,
internet banking and telephone banking do not have a significant influence on customer’s bank choice
decision. It could be observed however that the study is not primarily focused on the impact of financial
technology on financial inclusion and moreover, they employed primary data for the study which may not be
as reliable as secondary data.

In another related study, Mansur (2002), adopted qualitative research method to study the role of technology
in achieving financial inclusion in rural India. The paper attempted to examine the contributions of
information and communication technology towards achieving financial inclusion and reducing financial
exclusion in the country and analysed different application of information and communication technology
which banks are adopting. In his finding, it was revealed that information and communication technology
play a significant role in achievement of financial technology.

Dayadhar, (2019).posited that this would directly or indirectly reflect the effectiveness of the financial
institution’s efforts to bring-in underprivileged people to the mainstream financial system, especially in rural
area support in achieving inclusive growth. The study concluded that modern information and communication
technology can act as a tool to develop a platform which helps to extend financial services to remote areas.
The study specifically identifies internet banking and automated teller machines as two promising options for
achieving financial inclusion. Thus, the technology of internet banking and automated teller machines are
adding new avenues in providing banking services to the unbanked population who are financially excluded.
However, the study is qualitative and relied on previous empirical findings and conclusions which makes it
prone to bias and subjectivity.

Ene (2019) carried out a study on the impact of electronic banking on financial inclusion with an effort to
fetch out the key drivers of financial inclusion in the wake of Central Bank of Nigeria’s cashless policy.
Regression analysis was adopted using ordinary least square in his data analysis. However he argued that
electronic banking has significant effect on financial inclusion by specifically pointing out the point of sale as
major driver of the financial inclusion in Nigeria.

2.4 Theoretical Framework

Different theories have been used to explain financial inclusion by researchers. Some of these theories are the
financial innovation theory, the technology acceptance theory and the diffusion of innovation theory.

Technology Acceptance Model

This model was originally put forward by Davis (1986) to expound on the attitude behind the urge to employ
technological knowhow (Monyoncho, 2015). TAM deals with perceptions and not systems real usage and
argues when new technological advancement is introduced to the customers, either one of this occurs that is,
Perceived Ease of Use (PEOU) and Perceived Usefulness (PU) influence their decision (Lule, Omwansa &
Waema, 2012)

Diffusion of Innovation Theory

The Diffusion of Innovations (DOI) theory was proposed by Rogers (1995) to explain the approach through
which innovation can be passed via different ways over certain period among different users (Sarker & Sahay,
2004). DOI theory explores the ways in which innovative ideas are passed from one generation to the other.
According to DOI theory, an innovation is conveyed through various channels continually among individuals
of the same social beliefs (Echchab & Hassanuddeen, (2013).

3. METHODOLOGY

This study used descriptive research design to examine the impact of financial technology on financial
inclusion by assessing how the various proxies of financial technology influence access to financial product
and services.

The study considered all the understudied financial technology variables offered by all the financial banks in
Nigeria from 2010 to 2018. Specifically, internet banking, automated teller machine and point of sale were
selected to assess their impact on financial inclusion. The extracted data were analysed utilizing descriptive
and regression analysis techniques.

The Statistical Package for Social Science (SPSS) version 23.0 was used to generate the outputs.

Definition of Variables

S/N Type Variable Measure/Proxy

1 Independent Technology Internet banking (IB)
Automated Teller Machines
(ATMs)
Point of Sales (POS)
2 Dependent Financial Inclusion No of Bankable Population (FIN)
3 Control Population growth Population growth rate (POP)

Model Specification

The below stated model was used for this study

FIN= β 0 + β1ATMt-1 + β2POS t-1 + β3IBt-1 + β4POP t-1 + ξt-1

Where:

FIN represents the bankable population for the period

ATM represents the number of automated teller machine in Nigeria

POS represents the population that used point of sale in Nigeria

IB represents population that engaged in internet banking in Nigeria for the period under consideration
 POP represents the population that used point of sale in Nigeria for the period in consideration β0 to β4
represent coefficient of the variables ξ represent error term

Table 4.1: Descriptive Statistics of the variables employed

Skewnes Kurtos
N Minimum Maximum Mean Std. Deviation s is

Statisti
Statistic Statistic Statistic Statistic Statistic Statistic Std. c Std.

Error Error

(000,000) (000,000) (000,000) (000,000) (000,000)

Financial

7 1454.96 1851.83 1665.1114 163.79838 -.365 .794 -1.781 1.587

Inclusion

Internet

31567364087. 184596629926. 88909986491.13

7 00 57 72 53352358917.94969 1.033 .794 .468 1.587

Banking
Automate

156894912038 6437592402748
7. .4

. 1.58
Teller 7 39842089.7143 51661460.44785 .497 794 -.373 7

82 0

Machine

3637690158422.
60

1704858208818.944 . 1.58
Point of Sale 7 2367891.00 146267156.00 60 1.827 794 3.346 7

30

Valid N

(listwise)

The table above discussed the roles play by various variables employed in this study to encourage
the numbers of bankable individual in Nigeria banking sector. From the result, one can observed
that the Point of Sales plays a significant role to financial inclusion. At this point, the researched
agreed that the introduction of PoS in the Nigeria banking industry as a variable within the period
under the study encourage the bankable populace to engage in the formal financial services. In all,
the study showed that all the variables employed in this study had positive mean return which shows
a positive increase in the numbers of individual that use banking services.

In assessing the consistency of the variables in term of their contribution to the increase in the
customers of the bank, the above table also showed that the Point of Sales is more consistent
than other variables. This is because of its standard deviation of 1704858208818.94460 from a
means performance of 3637690158422.6030. This is follow by internet banking with the
standard deviation of 53352358917.94969 with the means value at 88909986491.1372. This has
shown the said variables experience a consistent contribution for the time under the study.

Table 4.2 Regression Result for the Variables Employed

Coefficients

Model Unstandardized Coefficients Standardized T Sig.

Coefficients

B Std. Error Beta

(000,000)

(Constant) 1153.788 148.431 7.773 .004

Internet Banking 8.319E-010 .000 .271 .315 .774

Automate Teller Machine 1.595E-010 .000 1.660 2.680 .075

Point of Sale -3.584E-006 .000 1.130 1.433 0.0247

The result in the table above demonstrates that positive relationship exist between financial
inclusion, internet banking, automated teller machine and point of sale. The implication of this is
that, any changes in the financial inclusion as dependent variable will cause an increase in the
other explanatory variables. The analysis explain further that keeping the variables at constant
level, the financial inclusion will only decrease by 12% (1153.788) .

The t-result shows that all the explanatory variables used in this study with the exception of
Point of Sale were statistically insignificant to explain their contribution to financial inclusion.
The reason is that the t (sig) were greater than 0.05 level of significant and on this basis, null
hypothesis is accepted to the study that internet banking and automatic teller machine were not
significant to explain the contribution to the financial inclusion.
Summary of the Regression Result for the Variables Employed

Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

a
1 .936 .876 .752 81.63282

a. Predictors: (Constant), Point of Sale, Automatic Teller Machine, Internet

Banking

The approximate R square of 88% as contained in the table above is an indication that change in
the financial inclusion were as a result of the contribution of the explanatory variables used,
while the remaining 12% will be as a result of other variables that are excluded in the model.
The Regression result

ANOVAa

Mode Sum of
l Squares Df Mean Square F Sig.

Regression 140987.706 3 46995.902 7.052 .071b

1 Residual 19991.753 3 6663.918

Total 160979.458 6

a. Dependent Variable: Financial Inclusion

b. Predictors: (Constant), Point of Sale, Automatic Teller Machine, Internet Banking.

The probability value of f, 0f 0.071 as shown in the table above is an indication that not all the
explanatory variables used in the course of this study are statistically insignificant to explain the
contribution to financial inclusion in the Nigeria banking sector. The reason is that F (sig) of 0.071
is greater than 0.05 significant level and in this case, the null hypothesis is accepted that the
model is statistically insignificant.

According to the number one objective of this study, which target at assessing the impact of
Internet Banking on Financial Inclusion in Nigeria. As observed from the result obtained in
regression analysis, although the coefficient is positive and insignificant and this prompt the
researcher to conclude that, positive relationship exist but Internet Banking has no significant
effect on Financial Inclusion in Nigeria. The finding is indeed contrary to the view of
Dayadhar, (2019) and Mago and Chitokwindo. (2014) It is expected that the introduction of
Internet Banking as a financial technology to ease the banking transaction should have
impacted positively on the Financial Inclusion. The suspicious here is that, the poor internet
service in the country and cost of data purchase might have hinder the progress thereby
discouraging people to use this medium Moddibbo M. (2019).

Finally, the last objectives is to find out the effect of Point of Sale on Financial Inclusion in
Nigeria. Recently Point of Sale has become a common tool in the hand of individuals and
businesses as a means of transaction without necessary going to banking hall. This
development ease way of doing business as well as job creation in the country. With role play
out by Point of Sale in the economy, it is expected to have positive effect on Financial
Inclusion in Nigeria of which this study is in agreement with. This finding also agreed with the
views of E. Ene (2019), who confirmed it`s positive and significant effect on financial inclusion
in Nigeria.
Moreover, three hypotheses were tested and the study showed that all except one explanatory
variable within the period covered by the study had no significant impact on the Financial
Inclusion in Nigeria.

5 Conclusion

The target of every government across the globe particularly underdeveloped and developing nation
is to achieve the financial inclusion. Financial inclusion is term as a key element to drive the
economic growth and development and this is what called for this research as an area of interest. In
my addition to the existing knowledge in this subject matter, the study seek to find out which of the
variables of financial technology that drive the financial inclusion in Nigeria. As such the study
discovered that positive relationship exist between the financial technology and financial inclusion
particularly the contribution of Point of Sales as a driver of financial inclusion is commendable.
The other two variables such as Automated Teller Machine and Internet Banking are facing major
challenges thereby hindering their contribution to financial inclusion in Nigeria.

Recommendations

Following the specific objectives outline in this study, the following have been recommended
for system improvement.

I. Effort should be made by the government through the network provider to improve in
networking for effective uses of internet banking. There should be a campaign by the
banks to their customers to educate them on how to use the services
 II. The policy maker should design a strategy toward enhancing the automated teller
machines in term of its availability not only the cities also in the rural areas, improve
on its networking and its ability to dispense different Naira denomination.

III. The campaign on the uses and the convenience of financial technology for transaction
should be intensify by the regulators since it is capable to drive the financial
inclusion.

IV. As such Point of Sale instrument have been found to be significant to drive the
financial inclusion, the Central Bank of Nigeria should make it more accessible to all
businesses in Nigeria,

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