FINANCIAL INCLUSION: USING MOBILE PHONES TO PROVIDE BANKING SOLUTION TO THE UNDER-BANKED IN NIGERIA

ABSTRACT

Mobile   banking   system   as   an   innovative   product   of   commercial   banks   and telecommunication   companies   has   become   an   important   practice   in   Nigeria.   The introduction of this phoning banking system has improve banking efficiency in rendering services to customer, as a result, the study examined inclusive financial solution: using mobile phones to provide financial solutions to the “unbanked”. The study adopted a quota   sampling   technique,   data   was   collected   by   means   of   questionnaires   from  the residents of Ikorodu North Local Government Area and its outskirts (i.e. the villages and remote areas surrounding that axis) – 700; the staff of the MTN Mobile Nigeria Limited,Lagos   office   –   300;   and   collaborative   staff   of   Guaranty   Trust   Bank   Plc.,   Lagos head office – 300. The result shows that mobile banking does provide financial solution to the “unbanked”  in  Nigeria. Hence,  there  is   a strongly  positive relationship  between independent and dependent variables. In other words, mobile banking is a reliable and efficient   means   through   which   the   “unbanked”   are   being   provided   with   financial solutions.

To this end, it is hereby recommended that mobile communication industries (e.g.MTN Mobile Money) in collaboration with banking organizations should endeavour to make available to low income earners, especially the “unbanked” or “under-served”affordable mobile phones enabled with modern internet access and gadgets. Similarly,network providers should endeavour to extend their network services to the inward parts of the rural areas, by planting their masts in all strategic areas of villages surrounding Nigeria   so   as   to   ensure   effectiveness   of   this   innovation.   Subsequently,   banking organisations are advised to reduce their charges and fees so as to encourage the fearful “unbanked” open accounts and continue to enjoy banking products and services, so as to impact   better   on   their   lives   through   mobile   phone   system   of   banking   of   providing financial solutions and that difficult application processes and procedures for account opening through mobile banking should be simplified in order to accommodate the stark illiterate among them.

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