An Essay on the Study of Success Variables of Online-financial Technology Marketing Firms Intermediation, and Bridging the Unbanked Customer Segments of the Nigerian Economy
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To ascertain the effect of online-financial technology marketing firms on the unbanked customer
- To ascertain the impact created by online-financial technology marketing firms on banking sector
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Defining FinTech
FinTech is a portmanteau of ‘financial’ and ‘technology’ and can broadly be defined as the “use of technology to deliver financial solutions” (Arner, Barberis & Buckley, 2016, p.1). However, due to its wide scope, Dorfleitner et al. (2016) argue that there is no universal definition of FinTech. They show that there are many similarities across most FinTech offering companies, however, there are also a number of anomalies that negate a general definition (Dorfleitner et al., 2016). The term ‘FinTech’ has evolved and no longer only encompasses financial services in which technology is present, but now refers to an industry as well. Zavolokina, Dolata and Schwabe (2016), attribute this phenomenon to the widespread use of the term in the media, arguing that; non-academic definitions could shape research and have thus contributed to the unresolved ambiguity of definitions and conflicting perceptions within academic literature. It is therefore prudent to observe the conceptual framework presented by Zavolokina, Dolata and Schwabe (2016) due to the dearth of scientific literature on FinTech (Puschmann, 2017). Zavolokina, Dolata and Schwabe, analyse 38 definitions which have been randomly selected from 829 academic, business and media publications containing the term ‘FinTech’ (2016). They propose that FinTech is constituent of three dimensions: input (technology, money flow and organisation), and mechanisms (change, disruption, applied IT to finance, and competition creation) which produce an output (new processes or new products/services or new business models) (Zavolokina, Dolata & Schwabel, 2016). The term fintech refers to the synergy between finance and technology, which is used to enhance business operations and delivery of financial services. Fintech can take the form of software, a service, or a business that provides technologically advanced ways to make financial processes more efficient by disrupting traditional methods.
Fintech Evolution and Potential
The term financial technology (Fintech) is used as an identifier for an organisation driving the provisioning of the financial services aggressively with the use of technologies. Because of their focus on development and delivery of financial products and services, with deliberate intent to adopt diverse technologies and be more customer-centric, offer convenience with relatively lower transaction charges compared to those obtainable among the traditional banks, the Fintech has become a noticeable disruptor of the financial industry globally.
CHAPTER THREE
RESEARCH METHODOLOGY
Research is the process of arriving at a dependable solution to problems through planned and systematic collection, analyzing and interpretation of data (Osuala, 1993).
Green and Full (1975) defines research methodology as the specification of procedures for collecting and analyzing the data necessary to solve the problem at hand such that the differences between the cost of obtaining various levels of accuracy and the expected value of the information associated with each level of accuracy is optimized.
Thus, in this chapter the method and techniques of data collection and analysis for this study are discussed in details, research design, population of study, sample and sampling technique, sources of data collection, research instrument, validity of the instrument, reliability of the instrument, procedure for administration of research instrument, as well as the limitation of the research methodology. This will be important in order to assess success variables of online financial technology marketing firms intermediation and bridging the unbanked customer segments of the Nigeria economy.
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from selected fintech firms, Lagos state in order to determine success variables of online financial technology marketing firms intermediation and bridging the unbanked customer segments of the Nigeria economy. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be Seventy-five (75) selected fintech firms, Lagos state.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 50 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them.
Data Presentation
This is the presentation of the quantitative data collected from the respondents through the questionnaire drawn-tabulation and percent (%) age will be used to analyze the data accordingly.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain success variables of online financial technology marketing firms intermediation and bridging the unbanked customer segments of the Nigeria economy. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of success variables of online financial technology marketing firms intermediation and bridging the unbanked customer segments of the Nigeria economy.
Summary
This study was on success variables of online financial technology marketing firms intermediation and bridging the unbanked customer segments of the Nigeria economy. Two objectives were raised which included: To ascertain the effect of online-financial technology marketing firms on the unbanked customer and to ascertain the impact created by online-financial technology marketing firms on banking sector. In line with these objectives, three research questions and research hypotheses were formulated and three null hypotheses were posited. The total population for the study is 75 staffs of selected fintech firms, Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study.
Conclusion
Finally, as competition develops between FinTechs and established banks, the conservative financial system presided over by incumbent players could become more sophisticated and competitive, fostering financial inclusion. However, it could also become more concentrated, as it is happening with big-tech platforms, generating new risks to financial stability and sustainability that deserve watchful scrutiny from both academics and practitioners
References
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