FINANCIAL TECHNOLOGY (FINTECH) AND FINANCIAL PERFORMANCE OF NIGERIAN BANKS AND SMES

The study examined the link between Fintech and financial performance in Nigerian SMEs and deposit money institutions. This study examines how Fintech innovations, such as digital payment systems, mobile banking, online lending platforms, and electronic fund transfer mechanisms, impact profitability, operational efficiency, financial inclusion, and business growth. It is based on institutional theory and synthesizes previous empirical and conceptual research.Although the results vary based on the type of Fintech channel and institutional environment, most studies show a favourable correlation between Fintech adoption and banks’ and SMEs’ financial performance. The report also identified major barriers to successful Fintech adoption, including insufficient financial and digital literacy, cybersecurity threats, infrastructure limits, and regulatory uncertainties.The paper concludes by highlighting the need for supportive regulatory frameworks and improved infrastructure to enhance Nigeria’s fintech-driven performance outcomes