EFFECT OF FINTECH SERVICES ON FINANCIAL INCLUSION OF START-UPS IN FCT-ABUJA

Abstract

This study examined the effect of financial technology (Fintech) services on the financial inclusion of start-ups in the Federal Capital Territory (FCT), Abuja. A quantitative research methodology was employed using an ex-post facto research design. The study population comprised all start-ups in FCT, Abuja that have been operational within the last one year. Time series data were utilized, and these secondary data were sourced from the Central Bank of Nigeria Statistical Bulletin. A census sampling approach was adopted. To test for stationarity among the variables, the Augmented Dickey-Fuller (ADF) unit root test was conducted. Hypotheses were tested using multiple regression analysis with the aid of E-Views statistical software version 23. Findings revealed that Point of Sale (POS) terminals have a significant effect on the financial inclusion of start-ups in FCT, Abuja. The second finding indicated that Automated Teller Machines (ATMs) also have a positive and significant effect on financial inclusion among start-ups. The third hypothesis showed that Online Mobile Banking (OLMB) has a significant effect on the financial inclusion of start-ups in the FCT. The study concludes that Fintech solutions, specifically POS terminals, ATMs, and online mobile banking, have a positive and statistically significant effect on the financial inclusion of start-ups in FCT, Abuja. The study recommends that to improve financial inclusion, Digital Financial Services (DFS) agents should be empowered to provide additional value-added services beyond acting as basic cash points. These services should include account opening and the resolution of customer complaints. DFS agents should be equipped to report failed POS transactions to financial institutions on behalf of customers, eliminating the need for customers to visit bank branches.