Nigerian Journal of Banking and Financial Issues (NJBFI)

THE ROLE OF FINTECH IN SHAPING THE FUTURE OF BANKING SERVICES IN NIGERIA; OPPORTUNITIES AND CHALLENGES

Abstract

Financial technology (fintech) has rapidly transformed the global banking landscape by introducing innovative solutions that enhance efficiency, accessibility, and customer experience. In emerging markets like Nigeria, fintech plays a critical role in addressing long-standing challenges within the banking sector. This study explored the impact of fintech innovations on the improvement of banking services in Nigeria. A descriptive research design was employed, with data collected from 190 respondents, including deposit money banks, microfinance institutions, and fintech firms. Regression analysis reveals significant positive relationships between fintech innovations and enhanced banking services. Digital payment systems and operational efficiency were found to streamline banking processes, while user experience significantly improved customer satisfaction and service adoption. These results align with the Technology Acceptance Model (TAM) and Disruptive Innovation Theory, demonstrating fintech's capacity to reshape traditional banking models. The study concludes by recommending greater investment in fintech solutions to drive operational efficiency and financial inclusion. Strengthening regulatory frameworks is also advised to foster innovation while protecting consumers.