Abstract

This study examined Unstructured Supplementary Service Data and financial inclusion in Edo State, Nigeria. The integration of Unstructured Supplementary Service Data (USSD) technology and finance has overwhelming benefits and has contributed immensely to making financial services accessible and affordable to users, especially the rural populace. Despite these overwhelming benefits, promoting financial inclusion with the use of USSD has been challenging due to lack of proper awareness on the use and benefits of USSD, cybersecurity, amongst others. In this study, USSD was proxied with awareness and usage, and transaction security. The study was anchored on Technology Acceptance Model (TAM) due to its emphasis on technology adoption. The study adopted survey research method, and from a population of 4,777,000, a sample size of 400 was obtained. Using descriptive statistics and regression analysis, the 390 duly filled copies of questionnaire were comprehensively analysed. The study revealed that USSD awareness and usage has a significant positive effect on financial inclusion (p-value = 0.023), while USSD transaction security is not a statistically significant predictor (p-value = 0.189), though it has a positive coefficient. The positive relationship between USSD awareness and usage and financial inclusion indicates that efforts to increase public awareness and promote the use of USSD services can significantly enhance financial inclusion in Edo State, while the significant role of transaction security in financial inclusion highlights the importance of ensuring robust security measures in USSD services. The study recommends stakeholders, including financial institutions and government agencies, to intensify awareness campaigns to educate the public about the benefits and usage of USSD services, particularly targeting rural and underserved communities, and financial service providers to invest in advanced security technologies and practices to safeguard USSD transactions. This includes educating users about safe transaction practices and ensuring that security measures do not compromise ease of use