IMPLICATIONS OF FINANCIAL TECHNOLOGY (FinTech) ON FINANCIAL SYSTEM DEVELOPMENT IN NIGERIA.

IMPLICATIONS OF
FINANCIAL TECHNOLOGY
(FinTech) ON FINANCIAL SYSTEM
DEVELOPMENT IN NIGERIA.
Chioma Iheruome Ibiam
Department of Banking and Finace,
Ebonyi State University, Abakaliki.
alunmachioma@yahoo.co.uk
&
Uzoma Emmanuel Ogbonna
Department of Banking and Finance,
Ebonyi State University, Abakaliki.
&
John N. Ibe
Department of Banking and Finance,
Ebonyi State University, Abakaliki.
ABSTRACT
This study investigated the effect of financial
technology (fintech) on the financial system
development in Nigeria. The specific
objectives are to examine the effect of
mobile phone transactions on the financial
system development in Nigeria, Point of sales
transactions and online transactions on
financial system development in Nigerian.
The study adopted Ex-post facto research
design as it is used to project future
outcomes with past events. The dependent
variable is financial system contribution to
GDP (FSCGDP) while the independent
variables are mobile phone transactions
(MPT), point of sales transactions (POS) and
online transaction (ONLT). Data analysis was
done using the Vector Error Correction andBook of Abstract
system Equation Estimation Technique. The
study found that there is a positive and
significant impact of ATM transactions, POS
and Online transactions on financial system
development in Nigeria; also a long run
relationship was found to exist among the
variables used. The study therefore,
recommends that; There is need for
Government to ensure that the relevant
agencies make significant efforts toward
ending frauds committed through online
transactions since it impact financial sector
development positively, financial service
industry especially banks should try and
sensitized their customers about the use of
mobile phone to carry out their financial
transactions. From the analysis conducted it
was observed that many have little or no
knowledge of the tool, emphasis should also
be made on the use of POS since it is one of
the easiest ways of carrying out financial
transactions without carrying cash around,
bank customers should also been encouraged
to use the ATM machines for most of their
transactions, as it will boost the financial
system development as shown in the analysis
conducted.

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