This study aims to compare the product development practices (PDPs) of conventional traditional banks and FinTech firms in Nigeria, focusing on responsiveness, financial inclusion, reach and impact. The investigation is grounded in the dynamic capabilities framework to understand how each type of institution adapts to a rapidly evolving financial services landscape.
An exploratory qualitative multiple-case study approach was employed, involving four traditional banks and five FinTech firms operating in Nigeria. Data were collected and analysed to capture insights into their respective approaches to product development, deployment and service delivery.
The findings reveal that both FinTech firms and traditional banks contribute distinct strengths to the Nigerian financial sector. FinTech firms are characterised by their agility, rapid innovation and focus on underserved markets, significantly advancing financial inclusion. In contrast, traditional banks offer stability, trust and a wide array of financial services that continue to attract a broad customer base. The study suggests that the future of financial services in Nigeria will likely be shaped by a hybrid model that combines the agility of FinTech with the robustness of traditional banking, fostering a more inclusive and customer-responsive financial services ecosystem.
This study offers a novel comparative perspective on how traditional banks and FinTech firms approach product development in an emerging market context, using the dynamic capabilities framework. By exploring the strategic interplay between innovation and institutional legacy, it provides practical insights for policymakers, regulators and financial service providers aiming to deepen financial inclusion and improve service delivery in an emerging market. It also contributes to the literature on digital transformation in the financial services industry from a Global South perspective.
