Assessment of Financial Technologies and Inclusion in Selected Rural Areas in Southwestern Nigeria
DOI:
https://doi.org/10.51459/jostir.2025.1.2.0145Keywords:
FinTech, Financial inclusion, Financial Services, Rural dwellers, NigeriaAbstract
This study examined the financial technologies adopted by rural dwellers in selected local governments in Southwestern Nigeria and the types of financial services they have access to. This was with a view to provide information to develop policy strategies to improve wholesome financial inclusion in rural Nigeria. The study was conducted in the Local Government Area (LGA) with the lowest population selected from Ogun, Oyo, Ondo and Ekiti States. Data was collected using a questionnaire administered on 250 rural dwellers. Data was analysed using descriptive methods. The results revealed that 43.5, 98, 100 and 97% of the respondents adopted Mobile Apps, Automated Teller Machines, Point-of-sale machines and USSD respectively. The low adoption of Mobile Apps was attributed to the low ownership of Smart Phones among respondents. While Mobile Apps provided access to account opening, payment, savings and credit services, the others merely provided access to money transfer services. The study concluded that while existing FinTech solutions have improved financial inclusion, critical financial services such as credit access, insurance, and account opening remain underutilized, thus, limiting their potential to foster broader financial growth. The study recommended public action to address low smartphone penetration, enhance FinTech capabilities, promote multi-service FinTech platforms and encourage support for digital inclusion.
References
Abid, H and Noreen, U. (2006). Ready to E-bank: Exploratory research on adoption of e- banking and e-readiness in customers among commercial banks in Pakistan. Spider, Vol. 31 No: 2, pp 1 - 31.
Ahamed, M. M and S. K. Mallick. (2019). “Is Financial Inclusion Good for Bank Stability? International Evidence.” Journal of Economic Behavior & Organization Vol. 157, pp. 403 – 427.
Alabar, N. (2012). Research methodology in the behavoiured sciences, Lagos: Longman. Awe J. (2006),’’ don’t open an account, if it isn’t an e-bank’’ (http www. Jida.com) retrieved 9th of September 2021.
Al-Adwan, A, Al-Adwan, A and Smedley, J. (2013) Exploring Students acceptance of e-learning using technology Acceptance Model in Jordanian University, International of Education and Development using Information and Communication Technology (IJEDICT), Vol. 9 No: 2. pp 4 – 18.
Al-Sukkar, A and Hassan, H. (2005) Toward a Model for the Acceptance internet banking in Developing Countries, Information Technology for Development, Vol. 11, pp 381 – 398.
Awoyemi, S. O., Adejuwon, O. O. and Oladele, W. O. (2024). The Welfare Benefits and Key Features of Frugal Innovations for the Bottom of the Economic Pyramid: The Case of Fast-moving Consumer Goods in Nigeria. Business and Economics in Developing Countries, vol. 2, No:1, pp 01- 06.
Bill and Melinda Gate foundation (2016). Nigeria Quicksights Report fourth Annual Financial Inclusion Insight, Tracker survey, Fieldwork conducted August-October 2016, Applied Research digital financial inclusion. http://www.finclusion.org
Daniel, E. (1999) Provision of Electronic Banking in the UK and the Republic of Ireland. International Journal of Bank Marketing, Vol. 17, No: 2, pp 72 – 83.
Davis, F. D. (1989) Perceived Usefulness, Perceived Ease of Use, and User Acceptance in Information Technology. MIS Quarterly, Vol.13, No: 3, pp 319 – 340.
Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S and Hess, J. (2020) The Global Findex Database 2017: Measuring financial inclusion and opportunities to expand access to and use of financial services. The World Bank Economic Review, 34 (Supplement_1), S2 - S8.
EFinA Report (2024) Unlocking Insights to Accelerate Financial and Economic Inclusion https:a2f.ng/efina-report-nigerias-formal-financial-inclusion-grows-to-64-in-2023
Ensor, Montez and Wannemacher. (2012) Financial Inclusion: Issue and Challenges. Economic and Political Weekly, Vol. 41, pp 4310 – 4313.
Fishman, R, G. (2000) The Diffusion and Assimilation of Information Technology Innovation” in: Framing the Domain of IT Management: projecting the Future through the Past, R, W, Zmud (ed), Pinnaflex Educational Resources, cincinnati, OH
Gefen, D, Karahanna, E and Straub, D. (2003) Trust and TAM in online shopping: An integrated Model, MIS Quarterly, Vol. 27 No: 1 pp 51 – 90.
Hornik, R, C, (Ed) (2002) Public Health Communication: Evidence for behavior Change (1st Edition), Lawrence Erlbaum Associates Publishing, pp 452.
Kama, U and Adigun, M. (2013). Financial Inclusion in Nigeria: Issues and Challenges, Central Bank of Nigeria occasional paper No. 45. https://www.cbn.gov.ng
Karahanna, C, Straub, W. D and Chervany, N, L. (1999) Information Technology Adoption across Times: A cross-sectional comparison of pre-Adoption and post-adoption Beliefs. MIS Quarterly, Vol. 23 pp 183 – 213.
Mago, S and Chitokwindo, S. (2014). The impact of mobile banking on financial inclusion in Zimbabwe: A case for Masvingo Province. Mediterranean Journal of Social Sciences, Vol. 5. pp: 221 - 230
Memedovich, A., Steele, B., Orr, T., Hollis, A., Salmon, C., and Hu J, (2025). Applying a diffusion of innovations framework to characterise diffusion groups and more effectively reach late adopters: a cross-sectional study on COVID-19 vaccinations in Canada in late 2021. BMJ Public Health. 2025;3:e000926. https://doi.org/10.1136/bmjph-2024-000926
Menzli, L., Smirani, L., Boulahia, J., and Hadjouni, M. (2022). Investigation of open educational resources adoption in higher education using Rogers’ diffusion of innovation theory. Heliyon, 8. https://doi.org/10.1016/j.heliyon.2022.e09885.
Nation Bureau of Statistics (2019). Nigerian Gross Domestic Products Reports Q3 2019, pp, 127. https://www.nbs,gov.ng
Nation Bureau of Statistics (2011) Nigeria Multiple Indicator Cluster, Survey, main report 2011, pp 420 https://www.nbs,gov.ng
National Population Commission (2006). Population and Development Review, Vol. 33, No. 1 (Mar., 2007), pp. 206-210
Ogundipe, A. A., Ogunniyi, A., Olagunju, K and Asaleye, A. J. (2019). Poverty and income inequality in rural Agrarian household of southwestern Nigeria: the gender perspective. The Open Agriculture Journal, Vol. 13, pp: 51- 57
Oulhi, H. (2024). The Influencers and the Adoption of New Products: Model for the Influencer Marketing. Turkish Academic Research Review, 9(4), 455-482.
Rogers, E, M. (1962) Diffusion of Innovation (1st edition) New York Free Press of Glencor, pp 283.
Rogers, E, M. (2003) Diffusion of Innovation (5th edition) New York Free press, pp 576
Sahay, Ratna, Martin Čihák, Papa N’Diaye, Adolfo Barajas, Ran Bi, Diana Ayala, Yuan Gao, Annette Kyobe, Lam Nguyen, Christian
Saborowski, Katsiaryna Svirydzenka, and Seyed Reza Yousefi. (2015). “Rethinking Financial Deepening: Stability and Growth in Emerging Markets.” IMF Staff Discussion Note No. 15/08, International Monetary Fund, Washington, DC.
Sai, A.A. (2018) An Exploratory Study of Innovation Adoption in Estonia. Open Journal of Business and Management, Vol. 6, pp: 857-889.
Sjamsudin, S. H. (2019). The impact of the development of FinTech on the existing financial services in Indonesia. International Journal of Advanced Research in Technology and Innovation, vol.1, No:1, pp 14–23.
Song, H., Yang, Y and Tao, Z. (2020). How different types of financial service providers support small-and medium-enterprises under the impact of COVID-19 pandemic: From the perspective of expectancy theory. Frontiers of Business Research in China, vol.14, No: 1, pp 1–27.
Stastista (2023). Revenue of e-commerce worldwide in 2023, by country, https://www.stastista.com
Valente, T, W. (1996) Social network thresholds in the Diffusion of Innovation, Social Network, Vol. 18 pp 69 – 89.
Venkatesh, V and Bala, H. (2008) Technology Acceptance Model 3 and a research Agenda on Interventions. Decision Science, Vol. 39, No: 2 pp 273 – 315.
World Bank. (2018). “Financial Inclusion Overview.” World Bank, Washington, DC. https://www.worldbank.org/en/topic/financialinclusion/overview#1
World Bank (2021) Approach Paper; The Drive for Financial Inclusion: Lessons of World Bank Group Experience International Finance Corporation, World Bank Group, Washington, DC. http://documents.worldbank.org/curated/en/719111532533639732/Digital-access- the-future-of-financial-inclusion-in-Africa June 30, 2021
Yorke, D. (2015). Innovation–Adoption Model. , 1-1. Volume 9. Wiley Encyclopedia of Management https://doi.org/10.1002/9781118785317.WEOM090478.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Journal of Science, Technology and Innovation Research
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.