Al-Hikmah University Journal

In the recent years, the performance of Deposit Money Banks (DMBs) has stunted in Nigeria due to the unregulated risks and challenges of FinTech services and the lack of safety nets in the business models, misuse of personal data, difficulties in identifying customers, and electronic fraud among other vulnerabilities of the new digital financial practices. This paper therefore become imperative to examine the impact of regulation of FinTech services on the performance of Deposit Money Banks in some selected banks in Kwara State Nigeria. Quantitative methods were utilized in the gathering and analyzing data. 220 employees from five (5) Deposit Money Banks were selected in Ilorin Metropolis.  Consequently, data were generated on accounts of ethical practice in the regulatory framework of FinTech service from the banks using well structured questionnaire. The banks’ managers and senior staff were the selected participants.  Pearson Moment Correlation, ANOVA and Multiple Regression were the statistical tools used to test for the hypothesis of the study. The study revealed that PayStack (β=0.705), Branch (β=0.602) PiggyVest (β =0.602), Mines (β=0.235) NetPlus (β =0.227) have direct positive impact on the performance of Deposit Money Banks at 5% level. Further, regulation of digital innovation in the banking industry have significant relation to the performance of  banks in Nigeria at 5% level (F=532.130, R=0.960, R2=0.922; p=0.00<0.05). For the improved bank’s performance, it is concluded that the adoption of FinTech service has the cost-benefits approach which improve efficiency and social structure of FinTech companies in a more secure network. It is recommended that Management of the Nigerian Deposit Money Banks (DMBs) should as a matter of urgency conduct regulatory network on the managerial practice of FinTech services and aligned them with proper link between FinTech services offered by the FinTech firms and bank services.