Financial Technology and Economic Growth: Evidence From Nigeria
This paper examined the effect of financial technology on economic growth in Nigeria using time series data for the period 2009-2023. Real gross domestic product (RGDP) represented economic growth as the dependent variable while mobile banking, automated teller machine, point of sales and web payment system proxied financial technology. The variables were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin. Vector Auto Regression (VAR) technique was used in data analysis. Findings show that Automated teller machine technology had a positive and significant effect on economic growth in Nigeria. Point of sales (POS) and web payment technology had positive and insignificant effect on economic growth in Nigeria while mobile banking technology exerted a negative and insignificant effect on economic growth in Nigeria. Thus, the paper recommended amongst others the need to expand mobile banking services to underserved communities: the Central Bank of Nigeria (CBN) and banks should ensure that robust security measures are put in place to prevent or reduce fraud as well as protect customers’ funds as it relates to the point of sales (POS) and web systems and others. Additionally, the need to provide 24/7 customer support through chatbots and human representations is highly recommended.
Keywords: Automated Teller Machine, Economic Growth, Mobile Banking, Point of Sales, Web System,
