Effect of Blockchain Technology Adoption on the Competitive Advantage of Financial Services Providers in Lagos, Nigeria

Ogundeko Sodiq Temitayo¹ , Lawal Yusuf Adedayo² , Ajemunigbohun Sunday Stephen³

1. Dept. of Accounting/Faculty of Management Sciences, Lagos State University, Nigeria.
2. Dept. of Management Technology, Faculty of Management Sciences, Lagos State University, Nigeria.
3. Dept. of Insurance, Faculty of Management Sciences, Lagos State University, Nigeria.

Section:Research Paper, Product Type: Journal-Paper
Vol.10 , Issue.8 , pp.44-51, Aug-2024

Online published on Aug 31, 2024

Copyright © Ogundeko Sodiq Temitayo, Lawal Yusuf Adedayo, Ajemunigbohun Sunday Stephen . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
Financial inclusion remains a significant challenge in Nigeria, particularly in urban centers like Lagos, where traditional banking services are constrained by stringent documentation, minimum balance requirements, and limited branch networks. Blockchain technology offers a transformative solution by decentralizing financial services, democratizing access, and enhancing competitiveness. This study examines the impact of blockchain adoption on financial service providers (FSPs) in Lagos, using a mixed-methods approach. Data was collected through structured surveys and semi-structured interviews with key personnel across traditional banks, credit unions, microfinance institutions, and fintech companies. The findings reveal moderate awareness of blockchain technology among FSPs, with 60% having adopted it for payment processing and record-keeping. Blockchain adoption has led to operational efficiency improvements for 80% of respondents and cost savings for 75%, though regulatory uncertainties and technological barriers persist. The study concludes that blockchain holds substantial potential for improving the competitive advantage of FSPs in Lagos, but strategic efforts are needed to overcome adoption challenges.

Key-Words / Index Term :
Blockchain technology, financial inclusion, competitive advantage, financial service providers, Lagos, mixed-methods research, Nigeria

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