FinTech and Financial Inclusion in Nigeria

ABSTRACT

This study examines the effect of FinTech on financial inclusion in Nigeria, with emphasis on the access and usage dimensions of financial inclusion. The study utilized interpolated quarterly time series data obtained from the Word Bank Development Indicators (WDI) database, the Central Bank of Nigeria (CBN), and the Nigeria Bureau of statistics (NBS) for the period of 2012 to 2019. The Auto Regressive Distributed Lag (ARDL) framework was used to estimate the short-run and long-run relationship between the dependent and explanatory variables of the study. The findings indicate that the Availability of Automated teller Machines (ATM) and Digital Financial Services (DFS) agents have significant positive effects on the access dimension of financial inclusion in Nigeria, while mobile phone ownership have a negative and significant impact on the access dimension of financial inclusion. On the other hand, ATM and internet banking usage have positive impacts on the usage dimension of financial inclusion in Nigeria, while mobile money have a negative impact. The study recommends that concerted effort should be directed at promoting the provision and adoption of FinTech enabled services as they can act as key drivers of financial inclusion in Nigeria.