Financial Technology Companies and Small and Medium Enterprises: A Transformative Relationship

Abstract

This study examined the impact of financial technology on the performance of small and medium enterprises (SMEs) in Ogun State, Nigeria, focusing on financial inclusion, access to financial services, and business growth. A quantitative survey design was adopted using a sample of 300 registered SME operators drawn from a population of 1,200 through simple random sampling. Data were collected via a structured Likert-scale questionnaire and analyzed using SPSS, employing descriptive statistics, regression analysis, and ANOVA.The results indicated that financial technology adoption has a significant positive effect on SME performance (R² = 0.64, p < 0.05), explaining 64% of the variation in business performance. Similarly, financial technology significantly improves access to financial services (R² = 0.58, p < 0.05), while emerging financial technologies positively influence financial inclusion (R² = 0.61, p < 0.05). The ANOVA results further confirm that the regression models are statistically significant.The study concluded that financial technology is a key driver of SME growth and inclusion in Nigeria and recommends policies that promote digital financial adoption and infrastructure development.