Artificial Intelligence and Financial Decision-Making in Nigeria: The Mediating Role of Fintech

Abstract

This study examined the mediating role of Financial Technology (FinTech) in the relationship between Artificial Intelligence (AI) and financial decision-making within Nigeria’s digital financial ecosystem. The study was motivated by the increasing integration of intelligent digital technologies into financial systems and the limited empirical evidence on how FinTech operationalises AI capabilities in financial decision processes within developing economies. A quantitative research approach based on positivist philosophy and a cross-sectional survey design were adopted. Data were collected from 394 respondents comprising bank employees, FinTech professionals, SME operators, and digitally active financial users across major financial hubs in Nigeria. Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed for data analysis. The findings revealed that AI exerts a positive and statistically significant effect on financial decision-making and FinTech adoption and utilisation, while FinTech significantly improves financial decision-making. The mediation analysis further confirmed that FinTech significantly mediates the relationship between AI and financial decision-making, indicating that a substantial proportion of AI’s influence on financial decision outcomes is transmitted through FinTech-enabled digital financial systems. The study concludes that AI and FinTech are complementary technologies within modern financial systems, where AI provides predictive intelligence and analytical capability while FinTech provides the operational infrastructure for practical financial decision implementation. The study recommends increased investment in AI-enabled digital financial infrastructure, institutional technological readiness, and supportive regulatory frameworks to enhance digital financial transformation within Nigeria’s financial sector.