Abstract:
The Financial technology (FinTech) rapid growth has been perceived as a
threat to the survival of traditional banking in both developed and developing
economies. Following this perception, the study investigated the comparative
analysis of financial technology (FinTech) operation and traditional bank
operation performance in Nigeria, using ALAT by Wema Bank Plc as a case
study. In this study, the secondary data used are obtained from WEMA bank
annual reports from 2012 to 2018. Specifically, both the CAMELS descriptive
and composite CAMELS ranking methodology was employed to measure
WEMA bank performance between the digital FinTech and the payment
FinTech operations eras in this study. The findings revealed that the digital
FinTech operations, commonly called ALAT in WEMA bank resulted to a
consistent positive impact on WEMA bank performance between 2017 and
2018 than the payment FinTech operations on WEMA bank performance
between 2012 and 2016. Therefore, the foregoing of the study recommends
that the digital FinTech operations should be fully optimized and intensified
by the stakeholders in the Nigerian banking sector to remarkably improve the
traditional banks performance and also guarantee financial inclusion and
stability in the Nigeria banking sector.
