The Role of FinTech in Enhancing Liquidity Resilience Among Growth Firms

Abstract

This study investigates the role of Financial Technology (FinTech) in enhancing liquidity resilience among growth firms, emphasizing the quantitative impact of digital finance adoption on liquidity performance indicators. Using secondary data from OECD (2022), World Bank (2023), and African Development Bank (2024), the analysis reveals that firms leveraging FinTech platforms experienced, on average, a 25% faster access to working capital, a 15% reduction in credit risk, and a 30% improvement in liquidity turnover compared to non-adopters. Furthermore, the current ratio of FinTech-enabled firms averaged 2.1, compared to 1.5 for traditional finance users, while the average loan approval period reduced from 14 days to 3 days. The case study of Flutterwave demonstrates that digital payment systems significantly reduced transaction delays and improved profitability by 22%. The findings underscore that FinTech adoption not only strengthens firms’ financial flexibility but also improves their operational sustainability during liquidity shocks. The study concludes that integrating AI-driven analytics, blockchain-based transparency, and mobile payment systems is essential for achieving liquidity resilience and fostering inclusive growth among emerging firms.