AGENCY BANKING STRATEGIES AND FINANCIAL INCLUSION OF RURAL AREAS IN KWARA STATE, NIGERIA

Abstract

The nexus between agency banking strategies and financial inclusion have been a debatable paradox for a long period of time due to the important role play by deposit money banks in finance inclusive economy functions. However, the goal of financial inclusion has not been achieved due to geographical distance of banks to rural area, poor bank innovation and technological advancement to rural settlement. The study investigates the effect of agency banking strategies (bank innovation strategy, geographical coverage strategy, and technological advancement strategy) on financial inclusion in rural areas in Kwara State, Nigeria. The study employed primary data obtained from respondents through administration of questionnaire within the period of 2019 and 2020. The data obtained were subjected to reliability and validity tests as well as Tobit Regression method of analysis. Findings revealed that agency banking strategies such as bank innovation strategy, geographical coverage strategy and technological advancement strategy have positive and significant effect on financial inclusion of rural areas in Kwara State, Nigeria. The study concludes that agency banking strategies enhance financial inclusion of rural areas in Kwara State, Nigeria. The study recommends that deposit money banks management should extend bank innovative products or services and enlighten the rural segment entrepreneurs on bank inclusion strategies so as to increase inclusive financial services and economic activities for the rural segments.