The Impact of Financial Inclusion on Profitability: Empirical Study of Banking Sector

Abstract

Examining the impact of financial inclusion on bank profitability is a primary goal of this research. Financial inclusion refers to the usage and accessibility of affordable financial services and products by underprivileged, low-income, and disadvantaged populations through M-banking, E-banking, ATMs, and so forth. Additionally, this study explores how the variables in the hypothesis relate to one another. A sample size of 200 respondents was used to gather the information. Furthermore, descriptive statistics, correlation analysis, and regression techniques were employed to evaluate the study hypotheses after the data had been statistically analysed using SPSS. The critical constructs are financial inclusion and bank profitability, while the items considered include the usage of, access to, and cost of financial services. This study is significant because it focuses solely on the issue of how financial inclusion affects bank profitability, in contrast to many other studies that take a more general perspective on the issue. The research's conclusions and findings suggest that these factors are significantly related.