ASSESSING THE RELATIONSHIP BETWEEN FINTECH ADOPTION AND FINANCIAL INCLUSION IN NIGERIA

Abstract

This research explores the impact of financial technology (FinTech) uptake on financial inclusion in Nigeria from 2009 to 2024. It draws on the Technology Acceptance Model (TAM) and the Diffusion of Innovation Theory to understand the process and factors that influence the adoption of new financial technologies. It examines key FinTech channels, including Point of Sale (POS), web payments, mobile payments and Automated Teller Machines (ATMs), and considers bank branch numbers as a measure of financial inclusion. The Central Bank of Nigeria Statistical Bulletin data were analysed graphically to detect trends and associations. The results show that the usage of POS, mobile and web payments has a weak correlation with bank branch distribution. This implies that consumers are determining their use of the services by convenience, speed and ease of access rather than close proximity to banks. However, the use of ATMs continues to be more closely linked to the physical distribution of bank branches. This also shows uneven rates of adoption across different parts of Nigeria, where the pace and scale of FinTech usage is greater in cities than in rural regions. This suggests the slow and uneven spread of financial innovations in different parts of the country. Finally, the study concludes that while FinTech is contributing to improve financial inclusion in Nigeria, its adoption is still limited by factors such as digital literacy, infrastructure, and trust. Overcoming these barriers is crucial for enhancing inclusive access to financial services across the country.