AN ASSESSMENT OF THE LEVEL OF ADOPTION OF FINANCIAL TECHNOLOGY BY NIGERIAN BANKS

Abstract

The emergence of Financial Technology (Fintech) has brought to forefront the importance of technology in the delivery of banking services. Banking services are being driven by innovative business models, and technology is causing creative
destruction in the financial system. This study assessed the level of adoption of Fintech among Nigerian commercial banks. The descriptive analysis reveals that the extent of adoption of Fintech by the majority of the banks sampled is at medium
level, and common nature of this Fintech innovation among the banks are money transfer and payment. In addition to that, it was found that the level of adoption of Fintech innovation has a positive relationship with in-house R&D activities (IRD), collaboration with external companies (CEC), hardware technology acquisition (HTA) and software technology acquisition (STA). Results of a least square regression show that Fintech innovation adoption and software technology acquisition have positive and significant impact on the banks’ financial performance at 5% level of significant. This study suggests that appropriate
investment in R&D and software technologies, finding collaborative Fintech partners by the banks and providing a better regulatory environment by the government/regulators should be given utmost attention. These would enhance robust service delivery, foster wealth creation and promote sustainable economic growth.