Is Intersubjectivity the Primary Driver of Financial Inclusion? Evidence From Nigeria

This paper argues that the geographical, socioeconomic and institutional factors that are cited in the literature are only symptoms of a financial services market that is not functioning effectively rather than factors that drive financial inclusion. It attributes the shortcoming in our understanding of what drives financial inclusion to a flaw in methodology. Specifically, this study views the financial services market as being socially constructed and reimagines the market as being driven by intersubjectivity rather than being adaptable or efficient. A survey of the consumers of financial services is conducted alongside interviews with the providers of financial services to understand their perceptions. The results show that consumers and providers hold differing views and expectations on critical dimensions of financial inclusion, including the level of access to financial services; the availability of products that meet consumers’ needs; the awareness of the banks; effective complaint redress mechanisms; pricing transparency; and the terms and conditions of the banking relationship. These findings reveal not only the differing interpretations and unmet intersubjective expectations of market agents but also structural incongruences within the market and an asymmetric relationship between consumers and providers. Overall, this study contends that these factors explain Nigeria’s low level of financial inclusion