S.U. EBOIGBE

This study investigates the impact of financial innovation on the Nigerian banking industry, with a focus on its effects on customer satisfaction, retention, and patronage, as well as the challenges customers face when using innovative banking services. A total of 200 questionnaires were distributed among bank customers in Benin City, Edo State, of which 100 were completed and analyzed using SPSS version 20.0, employing both descriptive statistics and regression tests. The findings indicate that financial innovation significantly enhances customer satisfaction (B = 0.666, t = 16.821, p = .000) and influences customer patronage (B = 0.152, t = 2.815, p = .005), but has an insignificant impact on customer retention (B = 0.085, t = 1.223, p = .222). Moreover, the study reveals notable challenges including technical issues, security concerns, delays in transaction processing, and slow complaint resolution. Based on these results, it is recommended that banks continue to invest in user-friendly digital platforms, integrate personalized customer relationship management strategies to improve retention, employ targeted marketing to enhance patronage, and upgrade their IT infrastructure to address operational challenges.

The study examined income inequality, access to credit, and financial inclusion spanning periods from 1995 to 2023 based on the accessibility of data. Four hypotheses were raised and evaluated using the fully modified ordinary least squares estimator. Based on the analysis conducted, the following findings were made that: the number of ATMs per 100,000 adults (ATM) has a negative but statistically insignificant coefficient (-0.0877, p = 0.6695); the number of registered mobile money accounts (MMA) also showed a negative but statistically insignificant relationship with income inequality (-0.0051, p = 0.4920); outstanding loans from commercial banks (LCB) have a positive but statistically insignificant coefficient (15.7753, p = 0.3713); and the private credit to GDP ratio (PRC) is the only variable with a statistically significant positive relationship with income inequality (0.1417, p = 0.0235). As a result of these findings, it was recommended that: policymakers should implement measures to ensure equitable access to credit, including prioritizing loans to underserved groups, such as small and medium-sized enterprises (SMEs), women, and low-income individuals, while creating incentives for financial institutions to extend credit to marginalized communities; should be made to increase mobile money accounts usage, particularly in rural and underserved areas; financial literacy programs should be introduced to educate borrowers on managing loans effectively and using them for productive ventures; and financial institutions should integrate ATMs with more advanced features, such as bill payment, mobile money transfers, and account opening, to make them more impactful for low-income users.