An Evaluation of the Effectiveness of Digital Financial Service (DFS) in Promoting Financial Inclusion (FI) among Low-Income Households
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 03
Abstract
Financial inclusion, characterized by access and usage of formal financial services, is a critical driver of economic development and poverty reduction. In Nigeria, a country with a large population of unbanked and underbanked individuals, adoption of Digital Financial Services (DFS) presents a promising avenue for expanding financial inclusion among low- income households. This study focused on evaluating the effectiveness of DFS for promoting financial inclusion among low-income households in Jigawa State, North-West Nigeria. Using a mixed-methods research approach, this study comprehensively assessed the impact of DFS on financial inclusion indicators. The research draws from a representative sample of low- income households in Jigawa State, examining utilization of DFS platforms, perceptions of the benefits and challenges associated with these services. Findings indicate notable increase in financial inclusion among low-income households in Jigawa State following the introduction of DFS. Factors contributing to this positive trend include improved convenience, reduced transaction costs, and increased financial literacy. However, challenges related to digital literacy (complexity) and trust in digital platforms (perceived risk) persist and need to be addressed to maximize the impact of DFS. This research contributes to the ongoing discourse on financial inclusion and digital financial services by providing empirical insights specific to the Jigawa State context. The outcomes of this study are expected to inform policymakers, financial institutions, and DFS providers on strategies for further enhancing the reach and effectiveness of digital financial services in promoting financial inclusion among low-income households not only in Jigawa State but also in similar regions across Nigeria and beyond.
Authors and Affiliations
SAMSON LAMELA MELA
Keywords
Related Articles
- EP ID EP732879
- DOI 10.47191/jefms/v7-i3-20
- Views 85
- Downloads 0
Collaborative Leadership to Manage Virtual School in Island and Border Areas
The border region serves as a gateway that can easily be influenced by internal and external factors, making it a geopolitically significant area. This region is often referred to as a frontier or gray area, affected by...
Implementing Islamic Banking Services in Uzbekistan
The paper focuses on the implementation of Islamic financial products in Uzbekistan. The study explores Islamic finance's fundamental ideas and concepts and evaluates the global experience in its advancement. The study e...
The Impacts of Benefits Perception and Risks Awareness on Participating In Voluntary Social Insurance - A Study on Informal Workers in Hanoi Area
Voluntary social insurance is the type of social insurance that an employee voluntarily participates in, it is allowed the employee to choose the payment rate and method of payment in accordance with his/her income, base...
The Theory of Planned Behavior (TPB) Approach and Regulation on Muzakki's Behavior in Paying Zakat in DKI Jakarta Province
In this report, the factors influencing zakat payment behavior, and the impact of responsibility and accountability on muzakki zakat payment behavior are analyzed. The following study uses IcekAjzen and Martin Fishbein's...
The Effect of Company Risk Management Disclosure, Intellectual Capital on Company Value And Company Size as Moderating Variables
This research aims to investigate the effect disclosure of Enterprise Risk Management and Intellectual Capital as independent variables on Company Value as the dependent variable, which then tests whether company size ca...