Effect of Fintech Adoption on Customer Retention in Deposit Money Banks in Wukari Metropolis

Abstract:

This study examined the effect of Fintech Adoption on Customer Retention in selected Deposit Money Banks (DMBs) in Wukari Metropolis, Taraba State. The research was necessitated by the increasing "churn rate" of traditional bank customers toward aggressive Fintech rivals (Neo-banks) despite heavy investments in digital infrastructure by DMBs. The study adopted a descriptive survey research design. The population comprised active digital banking customers of three selected active DMBs in Wukari, including, UBA, Zenith Bank, and Unity Bank. A sample size of 300 respondents was determined using convenience sampling. Data were collected using a structured 4-point Likert scale questionnaire, validated by experts, and tested for reliability using Cronbach’s Alpha, which yielded a coefficient of 0.84. Data analysis was performed using descriptive statistics and Multiple Regression Analysis via SPSS Version 27. Findings revealed that while Payment Channels (USSD and Mobile Apps) significantly drive usage frequency, Settlement Infrastructure (ATM and POS uptime) emerged as the most critical factor influencing long-term loyalty and advocacy in the Wukari Metropolis (beta = 0.412, p < 0.05). Furthermore, Security Architecture was found to be the primary driver of switching resistance among the community. The study concluded that Fintech adoption is a significant predictor of customer retention.