Digital Financial Services Adoption and Financial Inclusion in Emerging Economies: Evidence from Nigeria

Abstract: This study examines the relationship between Digital Financial Services (DFS), Digital Literacy, and Financial Inclusion in Nigeria, focusing on how DFS adoption enhances access to financial services and promotes economic inclusion. In emerging economies like Nigeria, where many remain unbanked, DFS offers opportunities for broader financial participation. Digital literacy is identified as a key factor moderating the relationship between DFS and financial inclusion. The study employs a quantitative approach, using survey data from 300 respondents across Nigeria. Descriptive statistics, correlation analysis, and regression were applied for data analysis.

The findings revealed that DFS adoption significantly improves financial inclusion, with users of mobile banking and e-wallets experiencing enhanced access to credit and payment services. Digital Literacy was found to positively moderate this relationship, as individuals with higher digital skills benefit more from DFS adoption. The regression analysis supports these results, with an R² of 0.63, demonstrating that 63% of the variation in financial inclusion outcomes is explained by the model.

The study concluded that DFS and digital literacy are essential for promoting financial inclusion in Nigeria, recommending policy interventions to improve digital literacy, enhance digital infrastructure, and support DFS adoption through regulatory measures.

Finance

1. Andoh, K., & Osei, M. (2019). Factors Influencing the Adoption of Mobile Banking in Emerging Markets. International Journal of Financial Research, 10(2), 45-57. [Google Scholar] [Crossref]

2. Arenas, D., & Allen, F. (2020). Financial Inclusion and Economic Development: A Review of the Literature. Journal of Financial Economics, 5(1), 12-29. [Google Scholar] [Crossref]

3. Central Bank of Nigeria (CBN). (2023). Financial Inclusion and Digital Financial Services in Nigeria. Retrieved from https://www.cbn.gov.ng. [Google Scholar] [Crossref]

4. Chong, A. Y. L., Chan, F. T. S., & Ooi, K. B. (2010). Predicting Consumer Decisions to Adopt Mobile Commerce: Cross-Cultural Perspectives. Journal of Business Research, 63(9-10), 1093-1099. [Google Scholar] [Crossref]

5. Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319-340. [Google Scholar] [Crossref]

6. Demirgüç-Kunt, A., Klapper, L., Singer, D., & Ansar, S. (2021). The Global Findex Database 2021: Measuring Financial Inclusion and the Fintech Revolution. World Bank. [Google Scholar] [Crossref]

7. Financial Technology Association of Nigeria (FinTechNGR). (2022). Annual Report on Digital Financial Services and Inclusion in Nigeria. Retrieved from https://www.fintechngr.org. [Google Scholar] [Crossref]

8. IMF. (2020). Financial Inclusion and Economic Growth. IMF Working Paper. [Google Scholar] [Crossref]

9. Sarma, M., & Pais, J. (2011). Financial Inclusion and Development. Journal of International Development, 23(5), 624-642. [Google Scholar] [Crossref]

10. Suri, T., & Jack, W. (2016). The Long-Run Poverty and Gender Impacts of Mobile Money. Science, 354(6317), 1288-1292. [Google Scholar] [Crossref]

11. United Nations Conference on Trade and Development (UNCTAD). (2021). Digital Economy Report: Opportunities for Emerging Economies. Retrieved from https://unctad.org. [Google Scholar] [Crossref]

12. Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27(3), 425-478. [Google Scholar] [Crossref]

13. World Bank. (2022). Financial Inclusion Overview. Retrieved from https://www.worldbank.org. [Google Scholar] [Crossref]

• Decision Tree and Automatic Linear Modeling Approaches to Predict Body Weight in Indigenous Sabi Sheep and Matebele Goat Females of Zimbabwe
• Microcontroller – Based Automatic Railway Crossing Control and Track Obstacle Monitoring System
• Modelling the Role of Absorptive Capacity in Foreign Direct Investment - Economic Growth Nexus: A Focus on South Africa’s Manufacturing Sector
• AI-Powered Wristband for Accurate BAC Monitoring Using Smart Data Fusion
• Climate Change Impacts on Different Regions