The Impact of Islamic Fintech on the Business Growth of Women Entrepreneurs in Nigeria

This study examines the impact of Islamic fintech on the business growth of women entrepreneurs banking in Nigeria. Using a sample of 357 women entrepreneurs across five major cities in Nigeria, the research employs a negative binomial regressions model to analyze the relationship between various aspects of Islamic fintech usage and business profitability. The study finds a strong positive relationship between Islamic fintech adoption and profitability, with a coefficient of 0.218 (p < 0.001). Notably, Takaful tech emerged as a significant contributor to profitability, with a coefficient of 0.961 (p < 0.001), highlighting the importance of Islamic insurance technology in enhancing financial security for women entrepreneurs. The research also reveals that sales made through fintech platforms have a significant positive impact on profitability (coefficient: 0.39, p < 0.001), underlining the importance of effective technology utilization in driving business growth. Interestingly, the study found a significant negative relationship between the number of Islamic banks patronized and profitability (coefficient: -0.22, p = 0.006), suggesting that the quality of banking relationships may be more crucial than quantity. Geographical factors, particularly the regions of Katsina, Gombe, Abuja, and Lagos, were found to significantly influence profitability (coefficients ranging from 0.687 to 1.026, all p < 0.001), suggesting that regional economic conditions or access to fintech resources may play a key role. The use of specific fintech devices, such as payment cards and POS systems, showed a significant positive impact on profitability (coefficient: 0.485, p = 0.039), while the effect of crowdfunding portals was negative but not statistically significant. Surprisingly, neither the length of time in business nor religious affiliation had a significant impact on profitability, which warrants further investigation into potential cultural or personal factors influencing entrepreneurial outcomes. Based on the findings of the study, the study recommends that Islamic financial institutions and fintech developers focus on refining Islamic fintech solutions, particularly in Takaful tech and digital payment systems, through user centered design and partnerships with women entrepreneurs. Additionally, regional strategies should support these entrepreneurs through business incubators, financial literacy programs, and training in fintech tools.