Data privacy compliance and operational performance of fintech firms in Nigeria

Abstract

This study examines the effect of data privacy compliance on the operational performance of FinTech firms in Nigeria. Specifically, it investigates how data governance, customer consent management, data security compliance, and regulatory compliance influence operational performance. The study is anchored on the Resource-Based View theory, which posits that organizational capabilities and resources determine sustained competitive advantage and performance outcomes. A descriptive survey and explanatory research design were adopted, and data were collected from 384 respondents drawn from selected FinTech firms across major commercial centres in Nigeria. The study employed a structured questionnaire measured on a five-point Likert scale. Data were analyzed using descriptive statistics, correlation analysis, and multiple regression techniques.The findings reveal that all dimensions of data privacy compliance have significant positive effects on operational performance. Data security compliance emerged as the strongest predictor, followed by data governance, regulatory compliance, and customer consent management. The study further shows that improved data privacy compliance enhances operational efficiency, service quality, customer trust, and business continuity among FinTech firms. The study concludes that data privacy compliance is a critical strategic factor for improving operational performance in Nigeria’s FinTech sector. It recommends strengthened regulatory enforcement, improved cybersecurity investment, enhanced data governance systems, and continuous staff training. The study contributes to literature by providing empirical evidence on the multidimensional impact of data privacy compliance on FinTech operational performance in an emerging economy context.