FINTECH GROWTH AND SMALL BUSINESS ACCESS TO CAPITAL IN UNDERSERVED MARKETS IN NIGERIA

Introduction: Access to capital remains a major constraint facing small businesses in underserved markets in
Nigeria, limiting their growth potential and contribution to inclusive economic development. The rapid growth of
financial technology (fintech) has introduced alternative financing channels that leverage digital platforms, mobile
payments, and data-driven credit assessment to expand financial inclusion. Despite Nigeria’s expanding fintech
ecosystem, empirical evidence on the extent to which fintech growth improves small business access to capital in
underserved markets remains fragmented. This study addresses this gap by systematically examining existing
empirical literature on fintech growth and small business access to capital in Nigeria.
Materials and Methods: The study adopts a systematic literature review approach guided by the Preferred
Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. Empirical studies published
between 2010 and 2023 were identified from databases including Scopus, Academia, ResearchGate, Web of
Science, and Google Scholar. Relevant studies were screened and selected based on predefined inclusion and
exclusion criteria. Data were extracted and analyzed using thematic synthesis to identify dominant fintech models,
mechanisms of impact, and contextual factors influencing access to capital for small businesses in underserved
Nigerian markets.
Findings: The findings indicate that fintech growth has moderately improved access to capital for small
businesses in underserved markets, primarily through digital payments, mobile money, and data-driven lending
platforms. Fintech innovations reduce information asymmetry, lower transaction costs, and expand geographic
outreach. However, access remains uneven, with limitations related to loan size, high interest rates, digital literacy
gaps, and infrastructural constraints.
Implications: The study has practical, policy, and theoretical implications. Practically, fintech firms and small
businesses can leverage digital transaction histories to enhance credit access. From a policy perspective, enabling
regulatory frameworks, digital infrastructure investment, and financial literacy initiatives are essential.
Theoretically, the study extends Financial Intermediation Theory and Diffusion of Innovation Theory by
contextualizing fintech-driven SME financing within underserved markets.
Conclusion: The study concludes that fintech growth plays a complementary but conditional role in enhancing
small business access to capital in underserved Nigerian markets. While fintech has reduced some traditional
financing barriers, its full potential depends on supportive contextual, regulatory, and technological conditions.
Coordinated stakeholder efforts are therefore required to maximize fintech’s contribution to inclusive SME
financing in Nigeria.