Fear of Bankruptcy and Scam: Risk Perception and Adoption of FinTech Banks in Nigeria

This study examines how Nigerian customers' adoption of FinTech banking services is influenced by perceived risks, namely their fear of bankruptcy and online scams, and evaluates the mediating function of trust in this relationship. 50 respondents in Lagos, Abuja, and Port Harcourt were chosen by convenience sampling and given a structured online questionnaire via social media and FinTech user communities as part of a quantitative study design. Descriptive statistics, Pearson correlation, and regression analysis in SPSS were used to gather and analyse data on adoption intentions, trust in security and regulatory control, fear of bankruptcy, and fear of online scams. The findings indicate that only 40% of respondents had faith in FinTech security measures, 55% doubted regulatory control, 72% anticipated financial loss due to institutional failure, and 62% were worried about online fraud. Moderate adoption rates were seen, with 35% of non-users eager to adopt if security improved and 54% currently utilising FinTech services, primarily mobile money platforms. Strong negative correlations between adoption and fear of scams (r = -0.58, p < 0.05) and bankruptcy (r = -0.62, p < 0.05) were found by statistical analysis. Regression analysis supported the Technology Acceptance Model (TAM) by confirming that trust significantly reduces these adverse effects. The results highlight how improving security infrastructure, legal frameworks, and open communication can lower perceived risks, boost confidence, and encourage more people in Nigeria to use FinTech services.