EFFECT OF FINANCIAL INCLUSION ON STABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The stability of financial firms is a critical concern for policymakers, regulators, and investors in Nigeria, as the instability of these firms can have far-reaching consequences for the broader economy. One factor that has been identified as potentially affecting the stability of financial firms is the level of financial inclusion within the country. This study therefore examined the effect of financial inclusion on stability of listed deposit money banks in Nigeria. The study adopted an ex-post factor research design and used panel data which was extracted from the published annual reports and financial statements of the selected sixteen (16) deposit money banks in Nigeria, and the statistical bulletin of the Central bank of Nigeria (CBN) covering the period 2014 to 2023. Regression analysis was used to test the hypotheses raised for the study. The study found that both mobile banking and internet banking have positive but insignificant effect on stability of listed deposit money banks in Nigeria at 5% significant level. The study concludes that financial inclusion influences stability of deposit money banks in Nigeria. The study thus recommends among others that, the management of Deposit Money Banks in Nigeria should improve on mobile banking adoption by way of investing in strategies to enhance the adoption and utilization of mobile banking services. Efforts should be made to improve user experience, security, and accessibility, particularly in underserved areas, to increase the impact of mobile banking on the firm’s stability.