The Effects of Financial Inclusion on Financial Performance of Financial Institutions in Cameroon

Purpose: This study seeks to investigate the effects of financial inclusion on the performance of financial institutions in Cameroon. Specifically, the study sought to examine the effects of access, availability and usage of banking services on the financial performance of financial institutions in Cameroon. Methodology: A cross-sectional research design was applied with the use of purposive and convenience sampling methods. 210 respondents from 75 financial institutions in Cameroon were selected. Primary data was collected using a self-administered questionnaire. Data collected was sorted, coded and analyzed using the Statistical Package for Social Sciences (SPSS v22.0). Data collected was analysed descriptively with the use of mean and inferentially with the use of ordered logit regression model and Pearson correlation metrix to establish the relationship between the dependent variable and the independent variables and the results were presented in tables. Findings: The results indicate that access to banking services, availability of banking services and usage of banking services positively influenced financial performance of financial institutions as measured by return on assets. Access to banking services and usage of banking services were identified as crucial factors in driving financial performance since they significantly influenced financial performance. Contribution to Theory, Policy and Practice: The study therefore recommended that officials in Cameroon should prioritize financial inclusion by means of passing laws that encourages lending practices by financial institutions. Also bank management should focus strategies to augment their financial performance by improve access and usage of banking products.