1Omankwu, Obinnaya Chinecherem Beloved; 2 Osodeke, Efe Charles, 3 Nwankwo, Chioma Grace and 4Mbagwu, Amarachi Austina
1,2,3,4 Department of Computer Science, Michael Okpara University of Agriculture,
Umudike, Umuahai. Abia State
Abstract
Financial inclusion remains a critical challenge in Nigeria, where millions of unbanked and underbanked individuals lack access to formal financial services. Artificial Intelligence (AI), particularly Machine Learning (ML), offers transformative potential to bridge this gap through data-driven financial innovations. This study examined the application of AI and ML in expanding banking services, improving credit access, and enhancing customer service delivery in Nigeria. Specifically, it assesses the effectiveness of ML-based credit scoring models for underserved populations, evaluates the role of AI-powered chatbots in financial service delivery, and proposes policy-relevant strategies for inclusive AI adoption. Using a mixed-methods research design, the study combines quantitative analysis of ML algorithms (Logistic Regression, Random Forest) with qualitative insights from interviews with fintech professionals and banking stakeholders. Data sources include Central Bank of Nigeria reports, World Bank statistics, and academic literature. Results indicate that ML-driven credit models increased loan approvals by up to 40% for individuals without formal credit histories. AI chatbots significantly improved customer engagement, reduced response times by over 50%, and accelerated the adoption of digital banking platforms. Overall, AI integration contributed to a measurable rise in financial inclusion, especially in rural and semi-urban regions. However, challenges such as limited digital infrastructure, algorithmic bias, and regulatory uncertainty were identified. The study recommends the implementation of ethical AI policies, investment in digital connectivity, workforce training, and regular audits of AI systems to ensure transparency and fairness. It concludes that responsible and inclusive deployment of AI can serve as a sustainable catalyst for equitable financial access and socio-economic development in Nigeria.