Description

Global estimates suggest that a considerable number of adults remain unbanked and
lack access to formal financial services like credit insurance, payment services or
savings accounts. In emerging and developed countries, several central banks have
implemented various initiatives to promote financial inclusion to lift the poor out of
poverty. This study investigates the challenges confronting the New Building Society
(NBS) Bank since it launched its financial inclusion product, Bank Pafupi agent
networks and Pafupi Savings account. The bank experienced substantial deficiencies
and inadequate commercial and business performance. Moreover, the digital world
progressed significantly after the introduction of the bank’s financial inclusion product.
However, it continues to depend on outdated processes and procedures to implement
strategies of financial inclusion. This investigation intends to understand the effect of
financial inclusion interventions on agents/bank profitability and customers at NBS
bank Pafupi savings and Agent banking. The researcher undertakes an effect
analysis, assesses the effect of digital banking, and explores financial inclusion
processes, capabilities, and barriers to achieve the stated aim. This study applied
mixed methods research approach across the data collection and analysis phases. A
target population size of 100 was sampled using stratified and simple random
techniques. Primary data was collected using questionnaires, interview guides, and
secondary data from books, journals, official documents and the Internet. The
researcher conducted data analysis using the manual thematic content analysis and
Statistical Package for the Social Sciences (SPSS) version 2.0 and MS Excel. The
study found that NBS bank is applying digital strategies to alleviate poverty and
address financial inclusion. Pafupi Savings and Bank Pafupi networks have
significantly assisted the financially excluded in the formal financial system and
poverty alleviation. Bank Pafupi performed very well from 2012 to 2020. The platform
of mobile banking provides inexpensive transactions, making it a practical solution for
realising the objective of poverty alleviation and bank profitability using financial
inclusion. The study found that Bank Pafupi faced network, liquidity and financial
literacy challenges. The NBS bank has strategies in place but they could be improved
hence recommended an interoperability Financial Inclusion model. Additionally, NBS
bank could invest in its digital operations for profitability and poverty alleviation.