CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Commercial banks play a major role in the economy by taking charge of the foundational functions of accepting commercial banks, lending and providing money transfer services. This helps the executive banks to expertly assign economic resources or intermediate funds from the sections to the less organised units. The banking-deposit activities have great effects on the financial sector and on the economy in general; this is a affair of serious concern for every participant in the banking industry. In spite of the fact that financial innovations (FI) are becoming a headline on the world political calender for continuous development, financial inclusion is still in its early childhood. Curator banks must be able to merge their services through financial inclusion, which entails that financial services are obtainable and accessible to all. In consequence, the bank draws more savings and expands its financial gains to the point where financial gains can be used to mask unforeseen future mislaying. Financial inclusion is thought about as a major part in eliminating poverty, inflating living standards and making jobs available. Globally, Bank's goal of attaining financial inclusion by 2020 is the bedrock for economic growth and poverty reduction. Access to financial services helps the poor to save and borrow, permits the procurement of real estate and investments in education, and empowers small and medium enterprises to aid opportunities for growth. Though, the potential to have access financial services, especially credit, is very vital to aid economic development and welfare. Financial inclusion is more and more acknowledged around the globe by policy makers, research and development agencies as a result of its significance as an instrument for economic development, especially in lessening maximal poverty, making jobs available, generating wealth and livelihoods. Global progress in general. Financial inclusion is a procedure that makes easy access available, availability and use of financial services by the entire economy.
1.2 Problems of the study
Households' access to financial services has over the years been a headline of policy discussion in approaching and growing economies like Nigeria (World Bank, 2018). A growing economy like Nigeria is fundamentally availed by investments and the like to enhance the quality of living of its people. Additionally, financial services made available by banks can assist in aiding the development of any economy. These projects assist people navigate poverty by supporting investments in their health, education and businesses. Quite a number of the poor in the globe, not exempting Nigeria, do not have financial services that can access these services, such as bank accounts, branch numbers, ATMs and electronic cards, but the value of the bank depends on the entry of banks (FI ), ATM and POS terminals, etc., which will attract people to invest. Since the banking sector of any country is one of the main determinants of economic development, abandoning such a study as banking would be as bad as abandoning the economy itself. Gross domestic product as a measure of quality of living in any growing economy. The study will therefore examine the effect of financial inclusion on commercial banks in Nigeria (a case study of access bank).
1.3 Objectives of the study
- The general objective of this study is to determine the effect of financial inclusion on commercial banks in Nigeria (a case study of access bank). The specific objectives are to:
- Examine the effect of bank embranchment on financial inclusion of banks.
- Investigate the effect of bank accounts on financial performance of banks.
- Evaluate the effect of number of ATMs on financial inclusion.
- Determine the number of active POS terminals on financial performance of banks.
1.4 Research Question
What are the effects of bank embranchment on financial performance of banks?
What are the effects of bank accounts on financial performance of banks?
What the effects of number of ATMs on financial performance?
What is the number of active POS terminals on financial performance of banks?
1.4 Research Hypotheses
HO1: There is a significant effect of bank accounts on financial performance of banks.
HO2: The number of ATMs have a significant effect on financial performance.
Significance of the Study
The findings of this study will be of immense benefit to:
The access bank and other banks, since it will help identify most of the challenges faced by the banks and effects of financial inclusion on commercial banks. Solutions will then be proffered on theses identified challenges. This will go a long way to help the bank achieve its corporate objectives.
The bank management and indeed the policy makers of the bank and other financial institutions to be aware of financial inclusion with a view to making strategic decisions.
This study will also be of benefits to the community and the society by creating awareness on the difference banking channels used by the banks and how they work.
The Federal Government of Nigeria will help develop, increase the banking growth in Nigeria.
1.7 Scope of the Study
The study was limited to financial inclusion, a major concentration of access bank. We shall have samples from Access bank staff who operate five branches of the bank in Lagos state. The simple random sampling system will be used to evaluate the samples. Methods of data collection shall include interviews, questionnaire administration, and the direct observation of the effect of financial inclusion on commercial banks in Nigeria (a case study of access bank).
1.8 Limitations of the Study
Just two constraints can be said to be a major limitation to this study. They include:
The study focused only on the effect of financial inclusion on commercial banks in Nigeria (a case study of access bank). The study is limited to access bank Lagos.
