Risk Management in Financial Innovations and Sustainable Development in Nigeria

The past two decades have recorded significant improvement in the Nigerian financial markets. The banking sector migrated from arm-chair of banking to a more sophisticated and globally competitive banking practices. The capital market has also moved from the traditional trading system to automated trading system while more marketable securities that are globally competitive are now traded in the Nigeria's capital markets. The study examined the relationship between financial innovations and the sustainable economic development in Nigeria. The study examined ATM Banking, Web (Internet) Banking, POS Banking and Mobile Banking as proxies of financial innovations and the GDP as the proxy for the nation's economic growth and development. The study established that a positive and significant relationship exists between all the variables and GDP with the exception of Mobile Banking. The study also identified some risk issues that can mitigate the positive contributions of the financial innovations to the sustainability of the Nigerian economy.