Branchless bnaking and financial inclusion; Reaching the unbanked and underbanked population

Abstract

In Nepal a large segment of the population in rural and semi-urban areas remains unbanked or underbanked due to geographic barriers, inadequate infrastructure and economic disparities. This study examines the role of branchless banking in improving financial inclusion among these underserved groups. Branchless banking which includes mobile banking, automated teller machines (ATMs), bank correspondents, point-of-sale (POS) systems and financial technology (FinTech) has appeared as a promising alternative to traditional banking. The study used both descriptive and causal research designs. the study was conducted in Bagmati Rural Municipality of Lalitpur District. A sample of 388 respondents was selected using Yamane’s formula and proportionate stratified sampling. Primary data were collected through structured questionnaires based on a five-point Likert scale. Data analysis was carried out using SPSS software. Descriptive statistics, correlation and multiple regression analyses were used as data analysis tools. The findings showed that all five branchless banking variables significantly and positively influence financial inclusion. Financial technology showed the highest impact followed by POS systems and mobile banking. These results showed the growing importance of digital finance and decentralized banking services in promoting financial access. The study concluded that branchless banking is a powerful mechanism for achieving financial inclusion in Nepal. It recommends expanding digital infrastructure, improving financial literacy and improving service quality across multiple branchless channels. Concerned bodies are encouraged to leverage this information in designing inclusive financial strategies that reach the most financially excluded groups. Keywords: Branchless banking, financial inclusion, mobile banking, ATMs, bank correspondents, point of sales, financial technology