1.1      Background to the Study


In recent years, the financial landscape in Nigeria has witnessed a significant transformation with the emergence and rapid adoption of financial technology, or fintech, innovations. These advancements have not only reshaped the way financial services are delivered but have also posed a formidable challenge to traditional banking institutions. This study aims to undertake a comprehensive assessment of the impact of fintech innovations on traditional banking services in Nigeria, exploring the dynamics of this evolving relationship and its implications for the broader financial ecosystem. Ogunleye, K. (2019).


The Nigerian financial sector has traditionally been dominated by traditional banking institutions, with a well-established network of branches and a reliance on conventional banking channels. However, the advent of fintech has introduced a wave of disruptive technologies such as mobile banking, digital payments, and blockchain, providing consumers with alternative avenues for accessing financial services. As fintech gains traction, it is essential to evaluate its implications on traditional banking in terms of market share, customer preferences, and overall industry dynamics. Central Bank of Nigeria. (2020).


This study will draw on a range of academic literature, industry reports, and empirical data to analyze the multifaceted impact of fintech on traditional banking services in Nigeria. By examining the changing consumer behavior, market dynamics, and regulatory responses, the research aims to provide insights into how traditional banks can adapt and thrive in this evolving financial landscape. The findings of this assessment will contribute to the existing body of knowledge on the intersection of fintech and traditional banking, offering valuable insights for policymakers, industry practitioners, and researchers seeking a deeper understanding of the ongoing transformation in Nigeria's financial sector. Adeoye, T. (2021).

1.2      Statement of the Problem

The rapid evolution of financial technology (Fintech) has significantly transformed the landscape of banking services globally, and Nigeria is no exception to this paradigm shift. As Fintech innovations continue to gain momentum, there is a growing concern about their impact on traditional banking services in Nigeria. The traditional banking sector, characterized by established brick-and-mortar institutions, faces challenges in adapting to the dynamic changes brought about by Fintech solutions such as mobile banking, digital wallets, and blockchain technology. This study aims to assess the impact of Fintech innovations on traditional banking services in Nigeria, exploring the extent to which these innovations are reshaping customer behavior, altering competition dynamics, and influencing the overall stability and efficiency of the banking industry.


The assessment of the impact of Fintech innovations on traditional banking services in Nigeria is particularly crucial due to the country's reliance on conventional banking structures for financial inclusion and economic development. The potential displacement of traditional banking services by Fintech solutions raises questions about the adaptability of the existing regulatory frameworks, the resilience of traditional financial institutions, and the implications for financial stability. Understanding these dynamics is essential for policymakers, regulators, and industry stakeholders to develop informed strategies that foster a symbiotic relationship between Fintech and traditional banking, ensuring a resilient and inclusive financial ecosystem in Nigeria.Top of Form

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1.3 Objectives of the Study

The main objective of the study is to examine Assessment of the Impact of Fintech Innovations on Traditional Banking Services in Nigeria. Specific objectives of the study are:

  1. 1.  Evaluate the extent to which fintech innovations have improved access to financial services in Nigeria compared to traditional banking.
  2. 2.  Analyze the impact of fintech innovations on the efficiency and cost-effectiveness of traditional banking services in Nigeria.
  3. Assess the potential challenges and risks associated with the integration of fintech innovations into the Nigerian banking ecosystem.

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

  1. To what degree have mobile money platforms and other fintech solutions increased financial inclusion, particularly among previously unbanked or underbanked populations in rural and urban areas?
  2. How have automation and digitalization practices adopted by fintech startups impacted the operational costs and service delivery speed of traditional banks?
  3. What are the major cybersecurity concerns and regulatory challenges emerging from the increased reliance on fintech solutions within the Nigerian banking system?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no statistical significant relationship between fintech innovations and traditional banking service in Nigeria.

1.6 Significance of the Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Banking sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.


1.7 Scope of the Study

The study is delimited to Moniepoint Nigeria. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.


1.8 Limitations of the Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.


1.9 Organization of the Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.

Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.









Ogunleye, K. (2019). "The Rise of Fintech in Nigeria: Opportunities and Challenges for Traditional Banks." Journal of Financial Innovation, 5(2), 45-62.

Central Bank of Nigeria. (2020). "Fintech and Financial Services in Nigeria: Regulatory Framework and Developments." Retrieved from

Adeoye, T. (2021). "Digital Disruption: Assessing the Impact of Fintech on Traditional Banking in Nigeria." International Journal of Banking and Finance, 7(4), 112-128.