Nigerian Journal of Banking and Financial Issues (NJBFI)

THE INFLUENCE OF FINTECH STARTUPS IN RESHAPING THE NIGERIAN BANKING LANDSCAPE

Abstract

This study explores the influence of fintech startups on Nigeria’s banking sector, focusing on how they enhance financial service accessibility, transform banking operations, and the challenges they face. Using a descriptive survey design, data was collected from 200 participants including fintech employees, bank staff, and fintech users in Lagos State. The regression findings indicated a strong positive and significant relationship between fintech startups and financial improvement (B = 1.632, P = 0.009) the R 2 value = 0.924 and Adjusted R 2 = 0.899 values the findings were substantiated by showing that 92.4 per cent of the variance in growth of fintech startups can be determined by the changes in financial accessibility. Nevertheless, the correlation between the fintech startups and the service delivery were weak and not statistically significant (beta = 0.419, p = 0.321, Adjusted R2 = -0.002). This value indicates that there is no strong influence between the fintech startups and service delivery. Banking industry issues, on the other hand, were moderately correlated to the emergence of fintech-related startups (beta = 2.130, p = .059), and the reading to achieve R is 0.747 which implies that 74.7 percent of the variance of fintech development be found within the bank inefficiency.  The study concludes that regulatory clarity, improved infrastructure, and greater public awareness to support its growth.