Veritatis Gaudium: Multidisciplinary Journal of Postgraduate Studies

Small and Medium Enterprises (SMEs) were widely acknowledged as engines of economic growth, particularly in developing economies such as Nigeria. However, many SMEs struggled with limited access to financial services. The rise of Financial Technology (FinTech), encompassing mobile payment platforms, digital lending, and cloud-based financial management tools, introduced new possibilities for bridging this gap. This study investigated the relationship between FinTech adoption and the financial performance of SMEs, with particular attention to the mediating role of technology-enabled financial inclusion. Drawing on a cross-sectional survey of 302 registered SMEs in Bwari Area Council, the research employed Pearson correlation and Sobel mediation analysis to test four hypothesised relationships. The study was grounded in the Technology Acceptance Model (Davis, 1989) and Financial Intermediation Theory (Gurley & Shaw, 1960). Findings confirmed that FinTech adoption significantly and positively affected financial performance (r = 0.612, p < 0.001), strongly promoted financial inclusion (r = 0.724, p < 0.001), and significantly mediated the adoption–performance relationship (Sobel z = 5.34, p < 0.001). The study concluded that FinTech greatly impacted the financial performance of SMEs. It therefore recommended that policymakers formulate supportive regulatory frameworks for FinTech integration within SMEs, SME operators invest in digital financial literacy and adoption, and FinTech providers develop affordable and user-friendly platforms to enhance financial inclusion and sustainable business growth.

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