IMPACT OF FINANCIAL TECHNOLOGY ON SMALL AND MEDIUM ENTERPRISES FINANCIAL INCLUSION IN ABUJA, NIGERIA

Abstract

Despite recent advancements in mobile banking, SMEs still face numerous challenges in account opening. Traditional banking systems are often inaccessible due to high costs, bureaucratic processes, and limited physical infrastructure. This study investigates the impact of financial inclusion tools mobile banking on SMEs' financial inclusion in Abuja, Nigeria. The main objective was to assess how these financial technologies enhance SMEs’ access to, usage of, and quality of financial services. Employing a descriptive survey research design, the study targeted a population of 10,265 SMEs, from which a sample size of 385 was determined using the Yamane formula. Respondents were selected through a cluster sampling technique to ensure representativeness. Primary data was collected through structured questionnaire, and the hypotheses were analyzed using linear regression with the aid of Statistical Package for the Social Sciences (SPSS) output version 27.0. The findings revealed that financial technology significantly influences SMEs' financial inclusion, with mobile banking having positive impacts. The study concluded that financial inclusion tools significantly enhance the financial accessibility and performance of SMEs in Abuja, Nigeria. Mobile banking emerged as a critical driver for facilitating account opening, underscoring its role in bringing SMEs into the formal financial system. Based on these finding, the study recommends that Policymakers, and financial institutions should invest in mobile banking platforms that are user-friendly, accessible, and tailored to the specific needs of SMEs. Efforts should include robust customer education initiatives to improve digital literacy and encourage the adoption of mobile banking as a primary channel for opening and managing accounts. Mobile network providers should collaborate with financial institutions to expand network coverage and ensure uninterrupted service.