EFFECT OF FINANCIAL INCLUSION ON THE PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The study examined the effect of financial inclusion on the performance of listed deposit money banks (DMBs) in Nigeria using census sampling method, data were collected from audited financial reports of thirteen (13) listed DMBs in Nigeria for the period of 2014 to 2020. Ex-post facto research design was employed and the fixed effects estimate was used for testing hypotheses after the Hausman test was run. Banks performance was proxied by return on asset (ROA) and net interest margin (NIM) while financial inclusion was proxy by number of automated teller machines (ATM), number of bank branches (NBB), loan to deposit ratio (LDR). The study found that the number of automated teller machines (ATM), number of bank branches (NBB), and loan to deposit ratio (LDR), have significant positive effect on the performance of listed DMBs in Nigeria measured by ROA and NIM. However, the study recommended that DMBs should improve the quality of financial services extended to both existing and potential customers in order to increase their performance.