ABSTRACT

This study empirically investigates nexus between financial technology (fintech) and bank efficiency in Nigeria over the period 2013-2020, using data for six big banks, Access bank Plc, First Bank Nig. Ltd,, United Bank for Africa (UBA) Plc, Guarantee Trust Bank (GTB) Plc, Zenith bank Plc and FCMB. Four major fintech variables (total value of transactions carried out by internet banking, mobile banking, POS and ATM),, as well as two exogenous control variable, aggregate bank deposit and real GDP were used as the explanatory variables, with a composite efficiency index used as the dependent variable. The panel least squares technique was utilized to empirically analyze the model. The empirical results show that fintech (i.e. internet banking services, mobile banking and ATMs) are positively and significantly related to bank efficiency of in Nigeria. POS facility is positively related to bank efficiency but the effect is weak. Further evidence show positive and significant effect real GDP on bank efficiency, while the effect of aggregate bank deposit is weak of deposit money banks.Against the backdrop of the foregoing findings, better and improved financial technology, including other ancillary innovative financial services are imperative to enhancing banking efficiency in Nigeria.