In any society, the main function of a bank is to act as an intermediary, mobilising funds from those who have a surplus (depositors) and allocating these to those in need of funding (borrowers).
Where banks operate on an interest basis, this can lead to the inadvertent exclusion of customers who do not wish to engage in interest based banking due to religious or ethical reasons.
Financial exclusion has a negative impact on society as it deepens the vulnerability of citizens to financial and economic shocks and reduces the flow of productive capital into the formal sector. The EFInA Access to Financial Services in Nigeria 2012 survey showed that 34.9 million adults (39.7% of the adult population) are financially excluded. Non-interest banking can be one very effective way to mobilise more funds to boost the Nigerian economy and ensure that all citizens are engaged in productive economic activity.