Financial Technology and Performance of Commercial Banks in Nigeria
Abstract
This study was conducted to investigate the effect of financial technology (FINTECH) on the performance of commercial banks in Nigeria. This is premised on the fact that FinTech has pervaded all aspects of commercial banking operations impacting on performance. The study involves adoption of Ex-post facto research design using secondary data obtained from the Central Bank of Nigeria statistical bulletin for the period 2009 to 2024. Automated Teller Machine and Mobile banking platform constituted the independent variables while Profit After Tax of the commercial banks was the proxy for financial performance. Data collected were analyzed using Ordinary Least Square regression involving descriptive and inferential statistical tools. The results revealed that FINTECH has a positive significant effect on PAT of commercial banks with R2value of 0.022732 (22.73%) and 0.00440 (4.4%) variations in the performance accounted for by the predictor variables. Based on the findings, the study recommended banks should invest more on Automated Teller Machine and Mobile Banking services so as to enhance liquidity while providing better services to its numerous customers. The Central Bank of Nigeria should enhance its regulatory frameworks for mobile banking operations, ensuring consumer protection and fair competition. Additionally, promoting financial literacy programs can educate consumers about the benefits and risks of both mobile and traditional banking services.
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