Moderating Role of Financial Literacy on the Relationship between Financial Technology and SMEs’ Growth in Nigeria

Purpose: This study examines the effects of FinTech adoption and financial literacy on the growth of Small and Medium Enterprises (SMEs) in Zamfara State, Nigeria. It specifically evaluates the influence of mobile money services, agency banking and POS services, and digital microfinance/P2P lending on SME growth, as well as the moderating role of financial literacy in the relationship between FinTech adoption and SME performance. Design/Methodology/Approach: A quantitative research design was employed using primary data collected through a structured questionnaire administered to owners and managers of registered SMEs across various sectors in Zamfara State. A sample of 400 respondents was selected through stratified random sampling. The survey instrument captured data on FinTech usage, financial literacy, and SME performance. Descriptive statistics, Pearson correlation, and multiple regression analyses were used to assess the relationships among the variables. Findings: The results indicate that FinTech solutions, including mobile money, agency banking/POS services, and digital microfinance/P2P lending, significantly enhance SME growth in Zamfara State. Financial literacy also demonstrates a strong positive effect on SME performance and serves as an important moderator, strengthening the impact of FinTech adoption on SME growth outcomes. Implications/Originality/Value: The study highlights the critical role of digital financial services and financial literacy in driving SME growth in an underserved region. It provides empirical evidence relevant to policymakers and financial institutions, recommending the expansion of digital financial access and the integration of financial literacy programmes to promote sustainable SME development in Zamfara State.