Developing a Sustainable Financial Model for Inclusive Growth in Nigeria: Integrating Fintech Innovation and Regulatory Frameworks

The study explores the integration of financial technology (fintech) innovation and regulatory frameworks as a promising approach to develop a sustainable financial model that fosters inclusive growth in Nigeria. The study identifies the pressing problem of limited access to formal financial services in Nigeria, with only 36.8% of adults having such access in 2018. It outlines three key objectives: examining fintech's role in expanding access, analyzing existing regulatory frameworks, and proposing a sustainable financial model. The study's significance lies in its potential to contribute to Nigeria's economic development by reducing poverty and increasing financial inclusion. It also offers insights for other nations facing similar challenges, highlighting the importance of regulatory frameworks and consumer protection in fostering fintech innovation. Review of empirical literature underscores the positive impact of fintech innovation on financial inclusion, citing examples like M-Pesa in Kenya and digital payment systems in India. Regulatory frameworks are shown to be crucial for both fintech development and financial inclusion. Additionally, microfinance and peer-to-peer lending platforms are found effective in reaching underserved populations. The conceptual framework developed in the study illustrates the interplay between financial inclusion, fintech innovation, and regulatory frameworks. It proposes four key propositions, with the central hypothesis being that a sustainable financial model integrating fintech and regulation positively impacts financial inclusion in Nigeria. The study concludes that the integration of fintech and regulation offers great promise for inclusive growth and financial inclusion in Nigeria. By adopting the recommended policies and addressing technological challenges, Nigeria can harness fintech's potential for the benefit of its citizens and economic development.