Empirical Evidence of the Potentials of Fintech Islamic Banking in the Eradication of Poverty in North West Geopolitical Zone, Nigeria

Abstract

The study examines the potential of fintech-Islamic banking to eradicate poverty in Nigeria in population of self-employed bankable adults who maintain formal account with the full fledge Islamic banks Jaiz and Tajbank as well as Sterling Plc being conventional bank with Islamic banking Window in Northwest geopolitical zone of Nigeria covering the seven states. The study used 400 samples drawn through multistage and purposive sampling techniques in four randomly selected states in the Northwest. The study used researcher's developed questionnaire with six subscales alongside demographic variables having satisfied validity and reliability requirements being important psychometric properties for any data collection instrument. The researchers however collected data through on spot data mechanism and were managed and processed using Statistical Package for Social Sciences (SPSS). The Data were analysed using simple regression analysis involving predictor and criterion variables. The findings of the study revealed that financial inclusion, knowledge and patronage of Islamic banking, education, occupation and fintech Islamic banking directly and significantly influence poverty reduction. However, fintech Islamic banking mediate in the relationship between predictor and dependent variables. The study concludes that financial inclusion, knowledge and patronage of Islamic banking, cultural norm and occupation as well as fintech Islamic banking have the capacity to eradicate poverty in northern Nigeria. It is therefore recommended that practical consideration should be given these variables when designing poverty eradication initiatives in Nigeria.