Deposit Money Banks' Computerization and Financial Inclusion in Nigeria

Abstract

This study examined deposit money banks’ computerization and financial inclusion in Nigeria covering the period 2013Q1 to 2019Q4. Data for the study were extracted from the Central Bank of Nigeria (CBN). The investigation employed the Ex Post Facto design given that it is targeted at analyzing the impact of some independent variables on a specified dependent variable. The Vector Error Correction Model (VECM) was used to estimate the structural parameters of the model. The major findings of the study were that point on sales contributes positively and significantly to financial inclusion in Nigeria (β = 0.004101, t* = 5.76845), automated teller machines contributes positively and significantly to financial inclusion in Nigeria (β = 0.000405, t* = 2.49681), web Pay contributes negatively and significantly to financial inclusion in Nigeria (β = -0.006088, t* = -5.27666), mobile Pay (MOP) contributes negatively and significantly to financial inclusion in Nigeria (β = -0.001506, t* = -5.79714) and financial deepening contributes negatively and insignificantly to financial inclusion in Nigeria (β = -0.028889, t* = -0.32843). It is therefore the recommendation of the study that the monetary authorities should develop more reliable technological checks to eradicate the possibility of fraud taking over the technological payment channels and the Central Bank of Nigeria should intensify its campaign for the acceptance of web pay by the bankable population since it has been identified as one of the major drivers of financial inclusion.