EFFECT OF FINANCIAL TECHNOLOGY (FINTECH) ON CORPORATE PERFORMANCE OF BANKS IN NIGERIA, 2009 TO 2021.

Abstract

This study examined the effect of financial technology (Fintech) on the corporate performance of banks in Nigeria, 2009 to 2021. The followings are the specific objectives of the study; to evaluate the effect of Automated values of ATM and debit card on return on asset of commercial banks in Nigeria, to ascertain the effect of mobile pay on return on asset of commercial banks in Nigeria and to examine the effect of National Electronic Funds Transfer (NEFT) on return on asset of commercial banks in Nigeria. The study used secondary sources of data from CBN statistical bulletin and NDIC annual report. Journals, textbooks and internet were also consulted. The study adopted ex-post facto research design. Ordinary Least Square Regression Techniques were used to ascertain the causal effect among variables. Upon the analysis of data, the following findings were drawn; Automated Teller Machine (ATM) has negative and non-significant effect on return on asset of commercial banks in Nigeria with t-statics is -0.074946 and probability value is 0.9419. Mobile pay has no positive and non-significant effect on return on asset of commercial banks in Nigeria. t-statics is 1.459515 while the probability value is 0.1784. National Electronic Funds Transfer (NEFT) has negative and non-significant effect on return on asset of commercial banks in Nigeria. t-statics is -0.566397 while the probability value is 0.5850. The implication of the study is that financial technology (Fintech) has not impacted significantly on the corporate performance of banks in Nigeria within the period under review. Finally the researcher therefore recommended that there should be a careful study of the system to determine the number of ATM terminals that will ensure its smooth running in Nigeria so as to prevent unnecessary friction in the system. Fair competition should be allowed in order to prevent monopoly-like ‘behavior by the licensed POS manufacturers. The study recommends that banks should consider coming with a clear and fair mobile banking prices which create a universal platform for all banking institutions. This will enhance fair market completion and thus bar financial institutions from customer exploitation. The study also recommends that the financial institutions should continue offering low transaction rates within their Mobile networks and ensure deposits of the various customers are protected at all times. The services of National Electronic Fund Transfer (NEFT) should be improved as NEFT fund transfer often fail due to some technical glitch that often happen at the time of a heavy load of payments. The charges on National Electronic Fund Transfer (NEFT) series should equally be reduced