Electronic Banking as a Tool for Financial Inclusion in Nigeria (2006-2014)

Abstract

This study sought to explore the impact of electronic banking as a tool for financial inclusion in Nigeria from 2006 to 2014 and in both urban and rural areas as cashless policies unfold in the Nigerian financial system. The specific objectives of this study were to: (i) determine the extent to which transactions using automated teller machine and point of sale (POS) machine had impacted the banking adult, (ii) investigate how far transactions using mobile/telephone banking impacted the banking adult, and (iii) determine the extent to which transactions using internet banking had impacted the banking adult in Nigeria. This study adopted ex-post facto and analytical designs. Time series data for nine year’s period (2006-2014), were collated from the Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics. Ordinary Least square regression technique (OLS)were employed in analysis and some other tests conducted at the significancelevel of 5%.The study discovered that while mobile/telephone banking and ATM transactions shared positive but non-significant relationship with the banking adult, transactions through POS and Internet channels shared negative and non-significant relationship with the banking adult in Nigeria. The study therefore, recommends that CBN, BOFIs should embark on intensive campaign to promote trade and commerce through the electronic channels especially at the grassroots. There is need to educate rural dwellers on the importance of e- banking as it would facilitate the success of CBN financial inclusion policy, through public education and awareness.