MEDIATING ROLE OF FINTECH ISLAMIC BANKING IN POVERTY REDUCTION DETERMINATIONS: A PERCEPTION STUDY OF SELF-EMPLOYED IN THE NORTHWEST GEOPOLITICAL ZONE, NIGERIA

Abstract

The study examines the potential role of fintech-Islamic banking in eradicating poverty in Nigeria among 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 a set of questionnaire with six subscales alongside demographic variables having satisfied validity and reliability requirements being important psychometric properties for any data collection instrument. The study take 400 respondents drawn from multistage and purposive sampling techniques in four randomly selected states in the Northwest. The researcher 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 hierarchical regression analysis involving predictor and criterion variables. The findings of the study revealed that financial inclusion and knowledge and patronage of Islamic banking are the direct predictors of poverty reduction whereas interaction of Financial Inclusion and Fintech, Knowledge and Fintech and Culture & Norms and Fintech are the significant predictors. The study concludes that financial inclusion, knowledge and patronage of Islamic banking, cultural norm individually and interactively have the capacity to eradicate poverty in northern Nigeria if considered during the planning of poverty of reduction programme. It is therefore recommended that practical consideration should be given to these variables when designing poverty eradication initiatives in Nigeria. KEYWORDS: Fintech Islamic banking, poverty reduction, financial inclusion, knowledge and patronage, Northern .Nigeria