Technology of Electronic Banking on Financial Inclusion Policy: The Nexus on Entrepreneurial Growth in Rural Communities, Akwa Ibom State, Nigeria

Abstract

The adoption of an electronic banking system has reduced the complexities in financial transactions and made it possible for the vast populace to be financially included formally. Thus, financial inclusion has become a product used to improve the economic prosperity of entrepreneurs in rural communities. The study examined the impact of e-banking on financial inclusion and entrepreneurial growth in rural communities of Akwa Ibom State. A survey research design was adopted alongside multi-stage sampling techniques. Data for the research were collected from 300 respondents of farmers, petty shop sellers and auto-mechanics and data were analysed using inferential tools of the SPSS statistical package. The study was founded on public choice and diffusion of innovation theories. The study revealed that productivity in the farming sector in rural communities has improved immensely due to financial inclusion, despite the fact some farmers are still unaware of formal banking services. The study recommended that the Government should ensure proper sensitisation of the benefits of formal banking because some farmers in rural communities are still unaware of formal banking services. This has affected the enhancement in productivity that e-banking on financial inclusion has offered to farmers in rural communities.