Infrastructure Diffusion and the Use of Self-Service Banking Applications: A Micro-Spatial Approach
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Date
2026-02
Authors
Morakinyo Adetutu
Kayode Odusanya
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
Self-service Banking Applications (i.e., internet and mobile banking) facilitate remote access to
financial services by bank account holders while also offering productivity and cost savings for
banks. In this study, we combine a unique dataset, constructed by matching geo-referenced cell
tower infrastructure data and a nationally representative survey of 21,844 individuals in Nigeria,
to investigate how infrastructure diffusion affects the use of Self-service Banking Applications
(SSBAs). Our analysis is underpinned by a novel micro-spatial approach used to compute the
number of cell towers within a radial specification of respondents’ street-level locations. After
controlling for individual and regional covariates and addressing the endogeneity issue, we find
that cell tower concentration increases the probability of using mobile and internet banking,
although this effect is stronger for mobile banking. Our results are robust to alternative
specifications for cell tower concentration. The findings of this paper underscore the view that
promoting access to financial services requires implementing policies aimed at closing the digital
divide associated with the diffusion of telecom infrastructure and contemporaneous technologies
like smartphone devices.