Purpose This study conceptualizes the implementation of FinTech as a process of implementing digital innovation and analyzes its basic organizational and managerial mechanisms in microfinance enterprises. Taking governance and innovation perspective, the study explains how organizations are coping with digital transformation (including AI-driven transformation) through the development and orchestration of internal capabilities. Design/methodology/approach Based on the literature on digital innovation, innovation management and dynamic capabilities, this article proposes a Capability-Alignment Model of Digital Innovation Implementation (CAM-DII). This model explains how digital innovation capabilities, innovation drivers embedded in customer expectations, and strategic alignment mechanisms work together to shape implementation outcomes. On an empirical level, the study uses data collected in 2025 in Nigerian microfinance enterprises and uses a taxonomic development method, supplemented by descriptive statistics and correlation analysis. Findings The results indicate that employee and organizational factors are key capabilities for digital innovation, while customer expectations for transparency, personalization and convenience are becoming endogenously embedded drivers of innovation. Strategic alignment mechanisms – such as internal communication, cultural cohesion and organizational readiness assessment – play a key role in coordinating and activating these capacities, enabling the coherent implementation of digital innovation. Research limitations/implications The implications of these findings, a part of a novel, theory-building model, are also significant for both practice and policy. For managers in microfinance companies, the results underscore the importance of investing in high-quality training and organizational learning as foundations for sustainable digital innovation, rather than treating FinTech as a purely technical upgrade. Strategic alignment mechanisms, such as internal communication, readiness assessments and shared strategic direction, should be actively cultivated to ensure that emerging capabilities and customer priorities are translated into coordinated implementation. Policymakers and development agencies supporting financial inclusion initiatives may also draw on these insights to design interventions that strengthen organizational readiness and internal coordination, rather than focussing exclusively on access to technology or on regulatory incentives. Despite these contributions, the study has limitations that should be acknowledged. The empirical analysis is based on a relatively small sample of Nigerian microfinance companies and relies on aggregated employee perceptions, which may limit generalizability beyond similar organizational and institutional contexts. In addition, the cross-sectional design restricts the ability to observe how the identified mechanisms evolve over time. Future research could extend this work through longitudinal designs, comparative studies across financial sectors and mixed methods approaches that combine perceptual data with objective performance indicators to further refine and validate the process model proposed in this study. Originality/value By approaching the implementation of FinTech as an innovation process based on organizational capabilities and adjustment mechanisms, the study goes beyond the dominant models of technology adoption and makes important contributions to the literature on innovation management, digital transformation and innovation dynamics. The proposed model provides practical guidance for managers looking for ways to orchestrate digital innovation (including AI-based innovation) in such a way that it supports both organizational efficiency and broader societal outcomes, such as transparency and inclusivity.
Offiong et al. (Sun,) studied this question.