Board governance and financial technology adoption: heterogeneous effects across commercial banks in Tanzania

The rapid expansion of financial technology (FinTech) is transforming banking operations worldwide, with especially significant implications for emerging economies. This study investigates how board composition influences FinTech adoption among Tanzanian commercial banks, accounting for heterogeneity across bank sizes. Drawing on panel data from 2010 to 2021, the analysis employs a System Generalized Method of Moments (GMM) estimator to control for persistence, unobserved heterogeneity, and endogeneity in the governance FinTech relationship. Results indicate strong persistence in FinTech adoption, implying that digital transformation follows a path‑dependent process in which early investments generate lasting advantages. Board characteristics exert selective and size‑specific effects: larger boards enhance adoption through broader expertise and network access, while frequent meetings constrain innovation by intensifying procedural oversight. Governance effects are most pronounced in medium‑sized banks, modest in small banks, and negligible in large banks with institutionalised digital systems. These findings underscore the strategic role of board governance in fostering sustainable FinTech adoption. Policymakers should promote size‑sensitive governance frameworks, and banks should strengthen digital, technological, and innovation‑oriented competencies at the board level to accelerate customer‑centric digital transformation within emerging financial markets.