FINTECH INNOVATION

This study examines the impact of fintech innovation on financial development in Nigeria, with a focus on the mediating role of green finance. Fintech innovations, such as digital payments, mobile banking, and peer-to-peer lending, have revolutionized the financial sector, enhancing financial inclusion and market efficiency. Meanwhile, green finance, a relatively emerging concept in Nigeria, seeks to channel financial resources toward environmentally sustainable projects. This study aims to assess the interplay between these variables and their collective influence on the country's financial ecosystem. Using a structured questionnaire distributed to 88 respondents, data was collected from fintech operators, financial institution employees, and stakeholders in green finance. The analysis employed descriptive statistics, regression models, and mediation analysis to evaluate the relationships among fintech innovation, financial development, and green finance. The findings reveal that fintech innovation significantly contributes to financial development in Nigeria, primarily by improving access to financial services and reducing transaction costs. Green finance, while still in its nascent stage, positively influences financial development by promoting sustainable investments. Additionally, the study confirms that green finance partially mediates the relationship between fintech innovation and financial development, amplifying the impact of fintech on sustainability-oriented financial initiatives. However, challenges such as limited data availability, regulatory gaps, and low public awareness of green finance hinder its full potential. The study concludes by recommending stronger regulatory frameworks, increased public education on green finance, and greater collaboration between fintech companies and policymakers to foster sustainable financial growth in Nigeria.