The Effect of Technology Adoption on Financial Inclusion: A Cross-country Panel Analysis between China and Nigeria

Abstract

Purpose: This study aims to examine the effects of Technology Adoption on Financial Inclusion with focus on Automated Teller Machines, Internet usage and Mobile Cellular subscriptions as the major drivers in a cross-country analysis between China and Nigeria Research Design/Methodology: To examine the impact of Technology Adoption on Financial Inclusion, we employed Pooled OLS and Feasible Generalized Least Squares estimators. Financial Inclusion is represented by number of depositors with Commercial Banks per 1,000 adults’ population. Findings: The results reveal that Automated Teller Machines, Internet usage and Mobile Cellular Subscriptions exert insignificant positive effects on Financial Inclusion both in China and Nigeria. The technology variables however exert significant positive impact on Financial Inclusion as represented by other dummy countries in the Panel. The study also found that GDP growth rate has significant negative relationship with Financial Inclusion in China and Nigeria as well as the rest of the world as represented. Originality/Value: The findings of the study reveal that Technology Adoption has greater but untapped potentials capable of significantly influencing Financial Inclusion in both China and Nigeria.