Högskolan i Skövde

Nigeria faces a great deal of financial inclusion challenges, with 36.8% of adults not participating in a banking system as of 2020. This study looks into how fintech companies drive financial inclusion by analysing the effectiveness of key fintech characteristics across different demographic segments. Using a quantitative cross sectional survey design, data were collected from 405 active fintech users across four Nigerian regions through stratified random sampling. A well-structured questionnaire measured five fintech stratospheres: low transaction costs, digital accessibility, alternative credit scoring, financial literacy tools, and regulatory compliance, alongside a composite Financial Inclusion Index. Statistical analysis included multiple regression, correlation analysis, and structural equation modelling. All five hypothesised relationships between fintech characteristics and financial inclusion were statistically supported. Digital accessibility came up as the strongest predictor (β= 0.421, p < 0.001), then regulatory compliance (β = 0.318, p < 0.001) and low transaction costs (β = 0.246, p < 0.001). The model explained 74.9% of the variance in financial inclusion outcomes. Not so much gender differences were found in fintech adoption or outcomes, and urban-rural differences were less. The sample demonstrated high financial inclusion levels (mean = 0.793), with 67.4% achieving scores above 0.750. Regulatory compliance greatly moderated relationships between other fintech characteristics and financial inclusion.The findings show that fintech platforms effectively address traditional banking barriers through user-friendly design, affordable services, and regulatory compliance. The balance of gender and geographical locations suggests fintech's inclusive potential. Results emphasise the importance of user experience, maintaining low costs, and ensuring regulatory transparency as a priority for fintech companies, while policymakers should develop clear approaches balancing innovation with consumer protection.