The Future of Banking: Fintech Regulation and Transformation of Financial Services in Nigeria

The Study appraised the Future of Banking: Fintech, Regulation and Transformation of Financial System, analyzing the implication for traditional financial institutions. Methodologically, survey design was employed with data sourced from selected account holders of both Fintech and traditional banks in Ikot Ekpene Local Government area metropolis. Beside the use of questionnaire, personal observations were carried out as data collection technique in addition to the secondary data sourced from relevant textbooks, journals, newspaper and Internet. Moreover, the study assessed the rating of respondents on customer services provided by both Fintech and traditional banks. As well, the identifiable customer services gaps in traditional banks were assessed. Moreso, findings revealed that Fintech and traditional banks differ significantly on customer services with notable areas of customer satisfactory services provided by Fintech over traditional banks to include faster and more accessibility to credit, easy account opening and set-ups, convenience and stress free, instant transfers, friendliness, innovative solution to the needs of customers, digital inclusion penetration with youth population and cordial customer relationship (addressing complaint swiftly). On service gaps in traditional banks, the study identified inefficient modern banking techniques, unreliable digital infrastructure and relative financial inclusion. In light of the findings, the study recommended that the traditional banks should develop modern banking technique such as artificial Intelligence (AI) and machine learning in financial service, invest aggressively in technology. As well, CBN should continue to tighten oversight supervisory function to mitigate cybersecurity threat and streamline the multiple regulation to address complexity and confusing regulatory burden and compliance environment on fintech banks. Also, the study stressed the need for CBN to strengthen beneficiary ownership framework and improve on transparency, ensuring consumer protection and promoting operational resilience, especially of Fintech banks