The emergence of Financial Technology in Sub-Saharan Africa has ignited a revolution, promising greater financial inclusion and efficiency. However, concerns remain about its potential impact on bank competition and risk. This study investigates how Fintech influences bank competition, funding, and risk within 11 SSA economies from 2016 to 2020, using data from S&P Capital IQ Pro, IMF Financial Access Survey, and World Bank databases. Our findings show that fintech reduces bank competition but increases bank funding unexpectedly. Increased competition indirectly lowers bank risk, highlighting a complex interplay between Fintech and market dynamics. These findings suggest that policymakers should prioritize regulations that foster responsible Fintech innovation while safeguarding financial stability. Fintech companies, on the other hand, must prioritize financial inclusion and robust security measures, while traditional banks must adapt to the evolving landscape while fortifying their risk management practices.

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Keywords

Fintech, Bank Competition, Bank Funding, Bank Risk, SEM, Sub-Saharan Africa