BRIDGING THE FINANCIAL DIVIDE: THE IMPACT OF DIGITAL FINANCE IN NIGERIA

The study aims to investigate the impact of digital financial technology in bridging the financial inclusion gap between 2011 and 2022. Specifically, the study examined how digital financial technologies such as internet banking, point of sale terminals and automated teller machines have facilitated access to appropriate and affordable financial services, such as savings, loans, insurance, and payments, for all segments of Nigerian society. By utilizing secondary data from the Central Bank of Nigeria and the Nigeria Inter-Bank Settlement System (NIBSS), the study employs descriptive and econometric techniques to analyze the impact of these digital financial services (DFS) channels on financial inclusion. The findings suggest that while point of sale (POS) terminals have a significant positive impact on financial inclusion, the influence of automated teller machines (ATMs) and internet banking is less pronounced. The government, in collaboration with network providers, should invest in improving network infrastructure to support the widespread adoption of internet banking. Banks should complement these efforts by conducting educational campaigns to familiarize customers with digital banking services. Policymakers should also prioritize strategies to expand the availability of Automated Teller Machines (ATMs) in both urban and rural areas. Additionally, improvements in network connectivity and the ATM's capacity to dispense cash are essential. Policymakers can leverage these insights to develop targeted policies that promote the growth of these financial services, particularly in areas where access is limited.