Strategic Adaptation in the Face of Fintech Disruption: Challenges and Best Practices in the Nigerian Banking Industry

Abstract

The rapid rise of financial technology (fintech) has redefined the operational and competitive dynamics of Nigeria’s banking industry. This conceptual paper examines how traditional banks strategically adapt to fintech-driven disruptions by integrating agility, innovation, and dynamic capabilities. Drawing from the dynamic capabilities and strategic agility frameworks, the study explores how Nigerian banks can sense technological opportunities, seize emerging markets, and reconfigure resources for sustained competitiveness. The paper identifies key adaptation challenges, including regulatory uncertainty, cybersecurity risks, and infrastructural deficits, while highlighting best practices such as leadership agility, digital partnerships, and hybrid innovation strategies. It contributes to the strategic management discourse by offering a contextspecific model of adaptation for developing economies. The findings underscore the importance of aligning technological transformation with strategic foresight to ensure long-term organizational resilience in a rapidly evolving financial ecosystem.