Cybersecurity Practices and Customer Trust in Digital Banking Platforms in Nigeria: A Comparative Study of Nigerian Fintech firms and Nigerian Conventional Banks
Abstract
This study examined the influence of cybersecurity practices on customer trust in digital banking platforms in Nigeria, adopting a comparative approach between fintech firms and conventional banks. However, the increased reliance on digital platforms has heightened cybersecurity risks, including fraud, data breaches, and unauthorized access, which threatens customer trust across fintech and conventional banking institutions. This study investigated how cybersecurity practices influence customer trust, with a comparative focus on fintech firms and conventional banks. The theoretical framework for this research was the Technology Acceptance Model and Trust theory. The study adopted a survey research design. Data were collected from 320 management staff across eight financial institutions, comprising four fintech firms and four commercial banks. A purposive sampling technique was employed, and all variables were measured using a 5-point Likert scale. The independent variables included data protection measures, authentication and access control systems, fraud detection and prevention capability, and customer security awareness, while customer trust served as the dependent variable. Data were analysed using descriptive statistics, independent sample t-tests, and multiple regression analysis. The findings revealed that cybersecurity practices have a significant positive effect on customer trust, explaining 68.1% of the variation (R² = 0.681). The t-test results showed a statistically significant difference between fintech firms and conventional banks, with fintech recording higher mean scores across all variables, indicating superior performance in cybersecurity and customer trust. The study concluded that effective cybersecurity practices are critical for enhancing customer trust in digital banking platforms. It recommended that financial institutions should invest in advanced cybersecurity infrastructure, strengthen customer awareness initiatives, and enhance digital capabilities to sustain trust and competitiveness in Nigeria’s evolving financial landscape.