COMPARATIVE ANALYSIS OF FINANCIAL TECHNOLOGY AND TRADITIONAL BANK PERFORMANCE IN NIGERIA: THE CAMELS APPROACH

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.