Strategic Responses of Traditional Banks to FinTech Innovation: Managerial Perspectives from Nigeria

This study examines how traditional banks in Nigeria strategically respond to Fintech-induced disruption, with a focus on the role of managerial cognition and perceived threat severity. Grounded in entrepreneurial orientation theory and a modified framework of adaptive managerial behavior, the research investigates seven strategic response dimensions: Championing Disruptive Ventures (CDS), Continuity in Banking Processes (CBP), Unacceptable Marketing Practices (UMP), Human-Oriented Processes (HOP), Strategic Budget Systems (SBS), Approval and Benchmarking Practices (ABP), and Innovation-Based Platforms (IBP). Business Continuity and Vision (BCV) is used as a proxy for organizational resilience. Data were collected from 84 strategic business units using a 40-item Likert-scale questionnaire and analyzed through ordinary least squares (OLS) regression. Findings reveal that continuity in banking processes and disciplined budgeting significantly enhance resilience, while overemphasis on disruptive innovation and human-centered processes may reduce it. The results suggest that under high perceived threat, banks benefit more from balanced strategic adaptation than from radical transformation. These insights underscore the importance of aligning entrepreneurial flexibility with operational discipline in navigating disruptive environments.