EFFECTS OF FINANCIAL TECHNOLOGY ON FINANCIAL PERFORMANCE OF SACHET WATER SME’S IN MINNA NIGER STATE

ABSTRACT The rapid integration of FinTech services in Nigeria has offered alternative financial solutions for SMEs, particularly those that were previously neglected by conventional banks. Therefore, this study examined the effects of Financial Technology (FinTech) on the financial performance of Small and Medium Enterprises (SMEs) in Niger State, specifically targeting sachet water producers in the Minna metropolis. This study concentrated on three essential aspects of FinTech— digital payment platforms, online lending services, and mobile banking applications and their influence on the financial performance of SMEs, assessed through profitability, revenue growth, and customer retention. A quantitative survey research design was utilized, and data were gathered through structured questionnaires distributed to a sample of 164 SME operators, chosen via a stratified sampling technique. Data analysis was conducted using a combination of descriptive and inferential statistics, such as Pearson correlation and multiple regression. The findings revealed that each of the three FinTech services positively and significantly influenced the financial performance of SMEs, with mobile banking demonstrating the most substantial individual effect. The regression model revealed an R-squared value of 0.290, suggesting that FinTech services account for 29% of the variance in SME performance. The findings indicate that the adoption of FinTech significantly boosts business transactions, enhances access to finance, and elevates operational efficiency for small and medium-sized enterprises. SMEs are encouraged to embrace additional FinTech tools, while relevant stakeholder such as regulators and service providers should work on improving infrastructure, digital literacy, and trust mechanisms to facilitate wider adoption.