You have no items in your shopping cart.
ABSTRACT
In an era marked by the rapid proliferation of financial technology (FinTech), this study delves into the intricate relationship between FinTech components and the performance of deposit money banks (DMBs) in Nigeria. Covering the period from 2013 to 2022, our research employs a multifaceted analytical approach encompassing descriptive statistics, unit root analysis, and an Error Correction Model (ECM) regression to unveil critical insights into this evolving landscape. The study’s findings illuminate key facets of the relationship: Firstly, the study demonstrates that FinTech components exert a positive and statistically significant influence on DMB performance. This underscores the pivotal role of technology-driven solutions in enhancing operational efficiency, customer engagement, and profitability within the banking sector. Secondly, the existence of cointegrating relationships and the rapid error correction mechanism underline the adaptability of Nigerian DMBs. These findings underscore the sector's ability to swiftly respond to deviations from equilibrium, aligning with the evolving FinTech landscape. The study’s recommendations emphasize the strategic imperative for DMBs to embrace FinTech, prioritize cybersecurity, collaborate with startups, and develop tailored FinTech strategies. Additionally, regulatory authorities are encouraged to adapt regulatory frameworks, fostering innovation while safeguarding financial stability. In conclusion, this study contributes to the understanding of the transformative impact of FinTech in Nigerian banking. It provides valuable insights for strategic decisions by DMBs and regulatory authorities in navigating this dynamic landscape, ultimately shaping the future of banking in Nigeria and beyond.
