Abstract
The rapid expansion of digital lending has transformed Nigeria’s banking landscape but heightened credit risk exposure. This study examines the effect of digital lending platforms and fintech partnerships on credit risk among listed deposit money banks in Nigeria from 2015 to 2024. Using an ex-post facto research design, secondary data were extracted from banks’ audited reports and the CBN database. The analysis employed panel regression with fixed effects, supported by diagnostic tests confirming the model’s robustness. The results reveal that digital loans disbursed, fintech partnerships, and digital platform utilization each exert positive and statistically significant effects on credit risk, implying that the increasing digitalization of loan delivery elevates non-performing loan ratios. These findings validate the Information Asymmetry Theory and the Technology Acceptance Model, indicating that while technology enhances lending efficiency, it also amplifies exposure when governance is weak. The study concludes that Nigeria’s banks must balance innovation with prudential risk management. It recommends the adoption of advanced credit analytics, strengthened fintech partnership governance, and hybrid lending models that combine automation with human oversight to mitigate digital credit vulnerabilities.
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