IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 3 2024
DOI: https://doi.org/10.56201/jafm.v10.no3.2024.pg111.134

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Impact of Financial Technology on Financial Institutions’ Performance. Evidence From Nigerian Commercial Banks

Okoro, Chinonso Churchill, Nnam, Hilary Ikechukwu, Etukudo, Joe Wilson Obizuo, Chinwendu Judith

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Abstract

The study examined the impact of financial technology on financial institutions’ performance. Evidence from Nigerian banks. The volume of ATM transactions, POS transactions and internet bank transactions were used to measure financial technology while liquidity ratio was used to measure financial performance. To achieve the objective of the study, ex-post facto was adopted. The data were collected through secondary source from CBN statistical bulletin. The data collected were analyzed using ordinary least multiple regression analysis. The result revealed that ATM transactions have positive impact on the performance of commercial banks in Nigeria. POS transactions have positive impact on the performance of commercial banks in Nigeria. Internet banking transactions have negative impact on the performance of commercial banks in Nigeria. In order to support the findings, the study recommends that financial institutions do more to entice their clients to use FINTECH products more regularly. This might be done through streamlining product usage, upholding product security, and guaranteeing product speed and efficiency. Clients will trust and embrace financial technology solutions after all of these conditions are met, which will eventually lead to profitability. Financial organizations should exercise caution while making technological investments. It is ludicrous to keep investing heavily in financial technology services if it is eventually difficult to pinpoint every component that affects performance and profitability. They should resist the impulse to spend more on useless financial innovations than their peers. The monetary and regulatory authorities should offer the proper safeguards for FINTECH users. To help clients feel less anxious about implementing financial technology solutions, businesses must also ensure that an efficient and dependable online monitoring system is in place.

keywords:

Financial technology, ATM transactions, POS transactions and internet bank transactions, financial institutions.

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