FINANCIAL TECHNOLOGY AND FINANCIAL INCLUSION

    Reports from the World Bank have shown that over half of the global adult population lacks access to formal financial services. This issue is particularly acute in less developed economies, where about 60% of individuals are without basic financial amenities. In Nigeria, despite advancements in financial technology, only 30% of the 109.8 million adult population has access to banking services. Previous studies examining the link between financial technology and financial inclusion have produced mixed results, with literature suggesting that financial literacy may influence this relationship. This study explores the moderating role of financial literacy in the relationship between financial technology and financial inclusion in Nigeria. Data were collected from 302 respondents, selected from a population of 1,460 registered SMEs in the Federal Capital Territory (FCT), Abuja, using the Krejcie and Morgan (1970) sample size determination table. Descriptive statistics and correlation techniques were used for initial analysis, followed by structural equation modeling (SEM) with Smart PLS software for deeper insights. The results indicate that both financial technology and financial literacy significantly impact financial inclusion among SME owners. Furthermore, financial literacy plays a critical moderating role in enhancing the relationship between financial technology and financial inclusion. Based on these findings, it is recommended that policymakers and financial institutions focus on adopting and promoting financial technology tools specifically designed for SME owners. Additionally, targeted financial literacy programs should be implemented to equip SME owners with the necessary knowledge and skills to maximize the benefits of FinTech solutions.