Managing Credit Risk in Lending Institutions: A Study of Access Bank PLC, Nigeria

Abstract

The study investigated the roles of Fintech in managing credit risk in lending institutions: A Study of Access Bank Plc, Nigeria. The study was guided by two research questions. Descriptive survey research design was adopted for the study. The population of this study comprised all the staff of Access Bank Plc, Anambra State. The sample size for the study was 175 staff drawn using Krejcie and Morgan’s sample size determination table. The instruments utilized for data collection was a questionnaire titled “Roles of Fintech in Managing Credit Risk Questionnaire (RTMCRQ)”. The instrument was validated by three experts. Cronbach alpha method was used for reliability test of the instrument which yielded overall value of 0.81. Mean and standard deviation were used for data analysis. The findings of the study revealed among others that the roles of Fintech in managing credit risk in Access Bank include to: offer crowdlending service by connecting capital-seeking companies with investors who are willing to lend directly to businesses, facilitate crowdfunding to improve person-to person lending, provide alternative sources of finance to potential loan defaulters, provide online loan repayment advice, provide quicker loans through simplified lending process, provide digital platform that enhances savings for loan repayment, provide financial tips on credit management and offer mobile wallets services that enable individuals make payment. Based on the findings, it was recommended among others Fintech Companies should use mass media for awareness-raising on their various services and potential benefits to individuals and firms.