Development of AI-Powered Chatbot for Financial Inclusion of Underserved Population in Northern Nigeria

Abstract

Financial inclusion is the availability and accessibility of financial services and products to individuals and businesses, regardless of their income level or location. Financial inclusion has remained a major challenge in Northern Nigeria, where a significant percentage of he population is either unbanked or under-banked as a result of the limited access to financial services, low level of financial literacy, and socio-cultural bottlenecks. To address this, the study developed an AI-powered chatbot, Naija BankPal, which is designed to bridge the financial inclusion gap among the underserved population in Northern Nigeria by providing access to financial orientation in English, Hausa, and Pidgin languages. Leveraging Natural Language Processing (NLP) chnologies, Naija BankPal provides a user-friendly, interactive platform that provides financial guidance on banking services, types of accounts, savings, and investment opportunities. The chatbot adopts a dual deployment strategy, using both online platforms (through WhatsApp and Telegram) and offline services (via USSD-based services), effectively addressing the limitations of internet accessibility and digital literacy. This study suggests the need for effective support frameworks that will ensure the integration of AI-driven solutions into national financial inclusion strategies, with emphasis on digital literacy promotion, building trust, and investing in infrastructure. This paper recommends the fostering of partnership among relevant stakeholders, while continuous improvement and regular evaluations of the chatbot’s performance should be ensured to achieve a sustained impact.