ROLE OF FINANCIAL TECHNOLOGY IN ENHANCING SAVINGS CULTURE AND WEALTH CREATION IN NIGERIA

Abstract

This study investigates the role of Financial Technology (FinTech) in enhancing savings culture and wealth creation in Nigeria. A quantitative, cross-sectional design was adopted, utilizing secondary data covering a sample of 3,000 Nigerian adults drawn from reputable sources such as the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS), and the Global Findex Database. Data analysis was performed using Stata, applying descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) multiple regression. Results reveal that FinTech Adoption has a positive and significant effect on Wealth Creation (β = 33.517), indicating that higher levels of FinTech usage contribute to increased household investment and business ownership. Conversely, Digital Payments exhibit a significant negative relationship with Wealth Creation (-2.407), suggesting that transaction volume alone may not translate to wealth generation. Similarly, Access to Credit negatively affects Wealth Creation (-52.584), implying inefficiencies in the productive use of FinTech-enabled credit. The regression model demonstrates strong explanatory power, with an R² of 0.725, indicating that approximately 72.5% of the variance in wealth creation is explained by the independent variables. These findings underscore the nuanced impact of FinTech on economic empowerment in Nigeria. While FinTech Adoption positively influences wealth accumulation, the roles of digital payments and access to credit appear more complex and potentially constrained by factors such as financial literacy, regulatory frameworks, and credit misuse.