FINANCIAL TECHNOLOGY AS A CATALYST FOR DIGITAL FINANCIAL INCLUSION AMONG SMES IN ABUJA, NIGERIA

Abstract

The rapid expansion of financial technology (fintech) has significantly transformed the global financial landscape, offering substantial opportunities to enhance financial inclusion. Specifically, point-of-sale (POS) systems and Automated Teller Machines (ATMs) have played a pivotal role in improving access to financial services, particularly for Small and Medium Enterprises (SMEs). This research explores how financial technologies, such as mobile banking, contribute to the financial inclusion of SMEs in Abuja, Nigeria. The primary aim of the study was to examine how these tools improve SMEs' access to, usage of, and quality of financial services. Using a descriptive survey research design, the study focused on a population of 10,265 SMEs, from which a sample size of 385 was calculated using the Yamane formula. A cluster sampling technique was employed to ensure a representative sample. Data was collected through a structured questionnaire, and the hypotheses were tested using linear regression with Statistical Package for the Social Sciences (SPSS) version 27.0. The results indicated that POS services have a significant positive impact on SMEs' access to financial services, as reflected in an R² value of 0.695. The study concluded that POS services play a crucial role in bridging the gap between SMEs and financial institutions. Based on these findings, the study recommends that policymakers and financial institutions invest in user-friendly, accessible mobile banking platforms designed to meet the unique needs of SMEs. Additionally, it suggests implementing comprehensive customer education programs to improve digital literacy and foster greater adoption of mobile banking for account management. Furthermore, collaboration between mobile network providers and financial institutions should be prioritized to enhance network coverage and ensure uninterrupted service.