Geospatial Analysis of Distribution and Accessibility of Microfinance and Commercial Banks in Akure South LGA, Ondo State Nigeria.

Year 2025, Volume: 12 Issue: 3, 216 - 226, 29.09.2025

Onyemaechi John Nnamani , Israel Olaoluwa Arigbede

Abstract

This study employs Geographic Information Systems (GIS) technique to analyze the spatial distribution of commercial and microfinance banks in Akure South Local Government Area (LGA). A total of 25 financial institutions, comprising 14 commercial banks and 11 microfinance banks, were identified within the study area, with 48 bank branches in total, including 33 commercial bank branches and 15 microfinance bank branches. First Bank Plc holds the highest number of branches among commercial banks, with 4 branches, while LAPO Microfinance Bank has the highest number of branches among microfinance banks, with 5 branches. The analysis reveals a concentration of 38 bank branches along the Oba Ile – Alagbaka axis, particularly around major market centers and the Federal University of Technology Akure campus. Buffer analysis conducted with buffer zones ranging from 500 meters to 1000 meters highlights areas of intense bank branch concentration, with corridors along major road axes showing overlapping buffers, indicating high representation. The study also observes a spatial normal distribution pattern, with higher bank branch density near the city center and decreasing density towards the periphery, following major road networks. This spatial analysis provides valuable insights into the geographic distribution of bank branches in Akure South LGA, aiding in strategic decision-making for future bank branch placements and financial accessibility across the region. The findings suggest a need for targeted banking expansion to optimize coverage and accessibility, especially in underrepresented areas, while leveraging existing corridors of bank concentration for enhanced service provision.

Keywords

Geographic Information System (GIS) , spatial distribution , commercial bank , microfinance bank.

Ethical Statement

we declare that our study do not require ethical committee permission

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