Financial Inclusion and the Performance of Listed Deposit Money Banks in Nigeria

  • Funso Tajudeen KOLAPO
  • Samuel Obafemi DADA
  • Adeola Oluwakemi ADEJAYAN
Keywords: Financial Inclusion, Deposit Money Banks, Bank Performance, Nigeria


The preponderance of informal market operators in developing economies is being decimated by the aggressive efforts of DMB in tapping into the unbanked populace through tech-aided innovative services as a strategic move to increase market share, enhance status, remain competitive and ensure overall performance. Thus, this study examined how financial inclusion impacts the performance of the Nigerian-listed DMBs. In specific terms, it looked at how DMB is influenced by automated teller machines deployed, branch networking, number of bank accounts, and point of sales terminals. The study used secondary data of all the DMBs in Nigeria for the period 2013 and 2020. The data were analysed using a pooled regression analysis. The DMBs' ROA was found to be positively affected by ATM, BET, and POS at a 5% significance level. The study concluded that financial inclusion instruments have been found to enhance the profitability of banks. Thus, banks are advised to improve their operational strategies through intense technological innovations besides establishing a transparent and prudent criterion for screening potential clients to ensure that their services are available to the poor and financially excluded individuals.