Impact of Financial Inclusion on Banks Profitability: An Empirical Study of Banking Sector of Karachi, Pakistan.

The main purpose of this research paper is to examine the impact of financial inclusion on banks profitability in Karachi. Financial inclusion is the usage and accessibility of the affordable financial services and products via M- banking, POS, E- banking, ATMs etc. to the deprived, low income and disadvantage sector of the population. Furthermore this study analyzes the relationship amongst the variables of the hypothesis. The foremost reason for targeting the banks of Karachi is that, it is the largest metropolis of Pakistan and generates 65% of the national revenue. The data was collected from the sample size of 149 respondents. The SPSS software was used to statistically analyze the data, moreover descriptive statistics, correlation statistics and regression statistics were utilized to test the research hypotheses. The main variables are financial inclusion and bank’s profitability while the sub variables are usage of financial services, access of financial services, cost of financial services and revenue generation. The significance of this study that creates it distinctive is that it discusses exclusively the topic of the impact of financial inclusion on banks profitability, whereas many other studies consider the topic generally. The findings and results of the research indicate that there is an insignificant relation amongst the variables.