Technical Assessment Of Financial Technologies In Nigeria
Eke, Chukwuemeka Ifegwu, PhD
Department of Economics, Faculty of Social Sciences, University of Abuja
Prof. Magaji, Sule
Department of Economics, Faculty of Social Sciences, University of Abuja
Osi, Mary Uchechukwu ACA
Department of Economics, Faculty of Social Sciences, University of Abuja
Keywords: FINTECH, ICT Economics, POS, ATM
Abstract
This study employs a stochastic production function model to measure technical efficiency of FINTECHs via point of sales, POS and automated teller machines, ATM in Nigeria. Primary data were obtained through the use of a set of questionnaires from three hundred and sixty representative samples. The results show that in Nigeria, (within the context of Nigeria’s socio-economic constraints) POS operations seem the most efficient in terms of technical efficiency with mean TE index of 0.914 followed by ATM service provision with a mean TE index of 0.797 (this result is in spite of the engineering efficiency claims. These coefficients are based on socio-economic realities) evaluations infused into the equation. The results of the inefficiency model show that the variables of age and years of education significantly increase these users’/operators’ TE while number of contacts made to FIs over transaction issues significantly decreases the FINTECHs’ TE.