FINANCIAL TECHNOLOGY AND BUSINESS OPERATIONS OF SELECTED FINANCIAL TECHNOLOGY FIRMS IN LAGOS

Rahmon Olawale Saka (PhD), Rabiu Onaolapo Olowo (PhD)

Abstract


Financial technology is a broad phenomenon that is evolving daily as more technology entrepreneurs enter the industry and transform it according to social needs. Financial technology could be considered a financial service, which is intervened by innovative technologies to satisfy the requirements of today and future: high efficiency, cost reduction, business process improvement, rapidity, flexibility, and innovation. This study has explored some of variables of financial technology which includes: technological innovation, financial innovation and financial accessibility on variables of business operations. The study adopted a descriptive survey design and the population of the study was 92 members of staff of chosen financial technology firms in Lagos, Nigeria. A structured questionnaire was administered online which gave a response rate of 82%. The instrument was validated using content validity index, and a test retest was done for the reliability of the instrument. The data gathered was analyzed through descriptive, linear regression analysis. Findings revealed that technological innovation has a significant effect on efficiency and effectiveness (sig =0.000 < 0.05), R2= 0.657 and t-statistic= 12.697, financial innovation has a significant effect on profitability (sig =0.000 < 0.05), R2= 0.336 and t-statistic= 6.404 and financial accessibility has no significant effect on sales revenue at a significant (sig =0.435> 0.05), R2= 0.008 and t-statistic= -0.785. The study observed that financial technology makes  firms to save great resources and reduces costs of operations, reduce cost per transaction in business operations and enable firms to satisfy their customer’s needs. The study recommended that organizations should investin technology and development of members of staff so that the system can reflect innovativeness in their technological operations as this has proven in this study that it would bring about efficiency and cost minimization.


Keywords


financial technology, business operation, innovation, efficiency

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