THE DIGITAL FINANCIAL INCLUSION AND POVERTY ALLEVIATION: ASSESSING THE ROLE OF MOBILE BANKING PLATFORMS IN DRIVING RURAL ECONOMIC DEVELOPMENT

Abstract

This study examined the relationship between digital financial inclusion and poverty alleviation, with particular focus on assessing the role of mobile banking platforms in driving rural economic development in Nigeria. The study was motivated by the persistent problem of financial exclusion and widespread poverty among rural dwellers despite ongoing government interventions and financial sector reforms. The study specifically investigated how mobile banking platforms enhance access to financial services and how such access contributes to poverty reduction and improved socio-economic conditions in rural communities. A descriptive survey research design was adopted for the study. The population consisted of rural dwellers, including farmers, traders, artisans, and small-scale entrepreneurs who utilize or have access to mobile banking services. A sample size of 286 respondents was selected using the Taro Yamane sampling technique. Data were collected using a structured questionnaire designed on a five-point Likert scale. The instrument was validated by experts and tested for reliability using the Cronbach's Alpha method. Data collected were analyzed using descriptive statistics such as mean and standard deviation, while Pearson Product Moment Correlation (r) was used to test the hypothesis at 0.05 level of significance. The findings revealed that digital financial inclusion has a significant positive effect on poverty alleviation among rural dwellers in Nigeria (Grand Mean = 3.98). The study also found that mobile banking platforms enhance access to financial services in rural communities to a high extent (Grand Mean = 4.13). Furthermore, there is a strong and statistically significant relationship between mobile banking platforms and poverty alleviation among rural dwellers in Nigeria (r = 0.742, p < 0.05). The study concluded that mobile banking platforms play a crucial role in promoting financial inclusion, reducing poverty, and improving rural economic development in Nigeria. Based on the findings, it was recommended that the government and financial institutions should strengthen digital financial infrastructure, improve financial literacy, and expand mobile banking services in rural areas to enhance economic empowerment and sustainable development.