IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 8 NO. 2 2022
DOI: https://doi.org/10.56201/ijbfr.v8.no2.2022.pg37.50

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Financial Innovation and Performance of Deposit Money Banks in Nigeria

Monday A. Gbanador, PhD ,Emmanuel U. Makwe, PhD ,Oladele Akeeb Olushola

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Abstract

The research investigated the impact of financial innovation on the performance of Deposit Money Banks in Nigeria. A time series data covering the periods, 2009 – 2021 was used. The assets of the Deposit Money Banks was used as the dependent variables while the Point of sales, Automated Teller Machine, Internet Banking and Mobile Banking served as the independent variables. The researcher used the ARDL model in the analysis. Further, post-test analysis using serial autocorrelation, heteroskesdasticity, CUSUM were conducted. It was discovered that POS had the highest performance while internet banking had the least. More so, the variables are statistically significant. The authors recommended that internet accessibility should be made cheaper for easy access and usage. Banks should reduce the ownership cost of POS machine and rural banks should conduct periodic seminars and knowledge dissemination programmes for their rural customers so as to increase their knowledge of mobile banking activities.

keywords:

Financial Innovation, mobile banking, automated teller machine, online banking, point of sale.

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