Fintech Scaling and Adoption in Nigeria: The Role of Behavioural Factors, Trust, and Regulation

Regulatory uncertainty affects both FinTech scaling and customer adoption decisions; an understanding of the regulatory environment is key to explaining FinTech sectoral growth and competition. Extant studies emphasise convenience and cost advantages of FinTech; limited attention has been given to how trust dynamics and regulatory perceptions jointly shape adoption behaviour in contexts where traditional banking remains dominant. Therefore, this study investigates customer behaviour, trust-risk perception and the regulatory environment of digital banking. Using data from an online survey of 452 respondents, the study applies Structural Equation Modelling (SEM) to assess the factors that shape savings, borrowing, and investment in adoption. The results indicate that behavioural intention predicts both perceived benefits and usage, while trust inversely influences perceived risk. Also, findings indicate that trust reduces perceived risk. Perceived regulatory support is positively associated with FinTech usage. Furthermore, findings show that the combination of behavioural readiness, institutional trust and regulatory clarity predicts adoption, not just technological advantage. The study suggests that regulators ensure clear consumer protection frameworks, consistent enforcement of cybersecurity standards, and a transparent dispute-resolution mechanism. For Fintech firms to sustain customer adoption, they need to integrate assurances of data protection, responsive customer support, and transaction transparency into their service delivery.