Date of Publication :8th September 2024

Abstract: The financial sector in Nigeria has seen a considerable transformation due to the integration of digital technology. Still up for debate is how much it has improved accessibility and involvement with financial services. Technology interference methods need a solid platform of stable and productive elements to guarantee that these services are affordable, safe, and easy to use. Through the Central Bank of Nigeria, the Nigerian government has tried to foster financial innovation as a crucial component of sustainable and equitable growth by developing policies that are anticipated to promote affordable financial services for the entire nation, especially for the less privileged and vulnerable groups. This study examined the impact of technological innovation on financial intermediation in Nigeria, utilizing data spanning from 2005 to 2023. The study set out to determine how points of sale affected Nigerian financial intermediation; it also looked at the influence of automated teller machines; and it evaluated the effect of Internet banking on Nigerian financial intermediation. An ex post facto research design and the OLS regression model were used to evaluate the data. The results indicated that, throughout the study period, internet banking had no significant impact on financial intermediation, Automated Tellers Machine had no significant impact and point of sale systems had a significant impact on financial intermediation in Nigeria. Accordingly, the study suggested that the Central Bank of Nigeria should improve point-of-sale accessibility for all Nigerian businesses; policymakers should devise a plan to increase the availability of Automated Teller Machines (ATMs) in both urban and rural areas; and the government should work with network providers to enhance the network for efficient use of Internet banking (IB).

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