Conference Paper

Financial Technology and Credit Accessibility of Small and Medium Scale Enterprise in Lagos State Nigeria.

Abstract Small and Medium Enterprises (SMEs) play a crucial role in economic growth, employment generation, and poverty alleviation. However, access to credit remains a major challenge for SMEs in Lagos State, Nigeria, as traditional banks impose stringent lending conditions that limit financial accessibility. This study examines the impact of Financial Technology (FinTech) on SME credit accessibility, focusing on online lending platforms, peer-to-peer (P2P) lending, and mobile banking. A cross-sectional survey approach was employed using a structured questionnaire, targeting owner-managers of selected SMEs in Lagos State registered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), totaling 42,067. A multistage sampling method, combining stratified and random sampling techniques, classified SMEs into five strata based on Lagos divisions: Badagry, Epe, Ikeja, Ikorodu, and Lagos Island, from which a proportional sample of 396 respondents was drawn. Data analysis using regression analysis in SPSS revealed that online lending platforms significantly enhance SME funding (p = 0.000), P2P lending has a strong positive relationship with SME credit availability (p = 0.000), and mobile banking substantially improves SME transaction processes and payment efficiency (p = 0.000). The study concludes that FinTech innovations play a transformative role in bridging the SME credit gap, fostering financial inclusion, and enhancing business efficiency. It recommends that government agencies and financial regulators establish clear policies to regulate online lending, implement stronger security measures for P2P lending, and expand mobile banking infrastructure to support SME growth. Keywords: FinTech, SMEs, Online Lending Platforms, Peer-to-Peer Lending, Mobile Banking, Credit Accessibility.