MICRO-FINANCE ANALYTICS AND CHALLENGES OF FINANCIAL INCLUSION AMONG UNDERSERVED POPULATION IN OYO STATE OF NIGERIA

Abstract

Despite various global efforts to close the financial gap, millions of individuals and small business in rural communities remain excluded from formal financial system due to limited access, financial illiteracy and systemic inefficiencies. The study investigates the role of microfinance analytics in solving challenges of financial inclusion among underserved populations in Iseyin area of oyo state, Nigeria. The research employed survey research method. A population of one thousand (1,000) individuals from underserved rural community of Iseyin in Oyo state of Nigeria. A stratified random sampling of microfinancing clients was used to select three hundred (300) participants comprising of existing and potential clients as well as stakeholders. Data was collected through structured questionnaire. Analytical tools such as descriptive statistic and ordinary least square method were used to analyse the data. Findings revealed that Microfinance analytics significantly enhance financial inclusion by improving risk assessment, adapting financial products to clients needs and help optimize resources allocation. The study concludes that micro-finance analytics is a transformative tool for addressing financial exclusion. To maximise its impact, the study recommended the Integration of lightweight’s micro-finance analytics into MFIs loan processing workflow and make it the default decision support tool. These would include piloting a cloud based analytic engine, using the dashboard during clients’ interview and setting clear Key performance index (KPI). The expected outcome of the implementation is that it would increase financial inclusion and high portfolio quality is maintained.