The Effects of Financial Technology on Financial Inclusion in Nigeria

Abstract

Financial technology (FinTech) has emerged as an important force in advancing financial inclusion by providing services to individuals who were formerly outside the formal financial sector. In Nigeria, FinTech is anticipated to improve access, affordability, and the utilization of financial services among different socio-economic groups. This study evaluated the effectiveness of financial technology in fostering financial inclusion in Jos, Plateau State. The specific objectives were to analyze the influence of FinTech on access to credit, determine its impact on the utilization of financial services, and examine its effect on the cost of accessing financial services in Nigeria. A cross-sectional survey design was employed, and data were gathered from 400 FinTech users drawn from a population of 159,600 active users of mobile banking, agency banking, USSD services, and digital wallets in Jos North Local Government Area. Information collected through a structured questionnaire was analyzed using descriptive and inferential statistics, including simple linear regression analysis. The findings showed that FinTech exerted a significant influence on access to credit, the utilization of financial services, and the cost of access. These results suggest that FinTech innovations have streamlined borrowing procedures, increased engagement with financial services, and lowered transaction expenses relative to conventional banking systems. The study concludes that FinTech plays a significant role in strengthening financial inclusion in Nigeria and recommends expanding digital infrastructure, enhancing financial literacy, and reinforcing consumer protection measures to support sustained growth in inclusive digital finance.