The Moderating Role of Fintech on the Relationship Between Financial Inclusion and SME Growth in North-Central States of Nigeria

Abstract

Regardless of the growing availability of digital financial technologies, achieving full financial inclusion for Small and Medium Enterprises (SMEs) remains a major challenge in many developing economies, including the North Central States of Nigeria. In response, this study evaluates the factors influencing FinTech adoption by examining the effects of Perceived Ease of Use, Perceived Usefulness, Perceived Security, and Trust on SMEs’ financial inclusion, while also analyzing the moderating roles of Digital Financial Literacy (DFL) and Perceived Regulatory Support (PRS). A purposive sample of 200 SME owners and managers with prior exposure to FinTech services participated in the study. Data were collected using structured questionnaires, and statistical techniques including descriptive analysis, correlation, regression, and PROCESS macro were applied to test the research model. The results indicate that although DFL and regulatory support are valuable elements in the FinTech ecosystem, they do not meaningfully alter the relationship between FinTech adoption and SMEs’ financial inclusion within the study context. Overall, the study confirms that FinTech adoption serves as a strong catalyst for improving access to financial services among SMEs in the region. The outcomes provide practical implications for FinTech providers, regulators, and SME stakeholders, emphasizing the need for user-friendly and secure digital platforms and initiatives that better engage underserved communities. Enhancing these elements can further accelerate financial inclusion efforts across rural and semi-urban areas of the North Central States of Nigeria.