Dr. ADAMGBO Suka L.C.1 , Dr. EDEH, B. M.2
1,2Department of Finance
Faculty of Administration and Management
Rivers State University, Nkpolu-Oroworukwo Port Harcourt
adamgbo.suka@ust.edu.ng
Abstract
The rapid evolution of digital banking technology has significantly reshaped the financial landscape, with
fintech firms and mobile banking operators emerging as formidable competitors to traditional banks. These
digital players offer seamless, affordable, and more convenient financial services, leading to a shift in customer
loyalty and redefining banking operations. In Nigeria, the Central Bank of Nigeria’s (CBN) financial inclusion
initiatives have further intensified the transformation of the financial ecosystem. This study analyzes the trend of technological disruptions and their implications for the future of the Nigerian banking industry. Digital
innovations are penetrating core areas traditionally dominated by banks, raising concerns that financial
institutions may become mere custodians of funds if they fail to adapt. To remain competitive, banks must
proactively engage with technological advancements, adopting both offensive and defensive strategies against
fintech disruptions. The study explores critical questions: What is the future of traditional banking? Will fintech
ultimately replace banks? How can banks remain relevant in an increasingly digitalized financial environment?
Using a qualitative explanatory approach, this research examines the trends, consequences, and strategic
responses necessary for bank operators and regulators. The study advocates for banks and regulatory bodies to assume proactive roles as drivers of digital transformation rather than mere spectators. It recommends
substantial investment in digital infrastructure, collaboration with fintech firms, and regulatory frameworks that
foster innovation while ensuring financial stability.
Keywords: Disruptive innovations, digital financial services, fintech, banking industry, financial
inclusion.