The Role of Digital Financial Services in Promoting Financial Inclusion in Developing Economies Evidence from Nigeria

Abstract

This study aims to investigate the role of digital financial services in promoting financial inclusion in developing economies evidence from Nigeria. Three research questions guided the study. The research design employed was descriptive research survey, and the population of the study was 400 while the sample size was the same because the population is manageable. The method of data collection was questionnaire which was distributed to the respondents and were returned accordingly. The study adopted descriptive statistics and simple linear regression as the econometric tools. The results of the study indicate a positive relationship between Digital Financial Services (DFS) and Financial Inclusion (FI) in Nigeria. This implies that 52% of the improvement in financial inclusion comes from the people using digital technology. Therefore, the research concludes that digital financial services (DFS) has positively affected financial inclusion in Nigeria by moving it forward. Thus, the study identifies some problems, such as poor internet connectivity, fraud, and fees that sting, but still, Digital Financial Services (DFS) remains the driver, helping more people access financial services. It was recommended that the government and stakeholders should enhance internet connectivity, electricity, and mobile network coverage to increase access to digital financial services.