IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 3 2024
DOI: https://doi.org/10.56201/ijebm.v10.no3.2024.pg64.79

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Effects of Technological Innovations on the Financial Performance of Deposit Money Banks (DMBs) in Nigeria 2010- 2021

Mgbada, Friday Nwome, Ele, Linus Egwu, Uguru, Leonard Chukwuma, Tebepah, Sekeme Felix

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Abstract

This study examined the effects of technological innovations on the financial performance of Deposit Money Banks (DMBs) in Nigeria. The specific objectives of the study were to: ascertain the effect of internet banking on the financial performance of Deposit Money Banks in Nigeria, examine the effect of Automated Teller Machines on the financial performance of Deposit Money Banks in Nigeria and ascertain the effect of mobile banking on the financial performance of Deposit Money Banks in Nigeria. The study used secondary time series data sourced from the Central Bank of Nigeria statistical bulletin and were analyzed using Autoregressive Distributed Lag (ARDL). The findings of the study indicated that Internet Banking have significant and negative effect on the financial performance of Deposit Money Banks in Nigeria, Automated Teller Machines had significant and positive effect on the financial performance of Deposit Money Banks in Nigeria while the result further revealed that significant and positive effect exist between mobile banking and financial performance of Deposit Money Banks in Nigeria. The study concluded that technology have significant positive effects on all the indicators except in internet banking which could be attributed to its low patronage. The study among others recommended that relevant agencies such as Central Bank of Nigeria, Deposit Money Banks etc should ensure adequate security for financial innovations installations to improve confidence to loyalties, that financial service providers should the use of mobile banking and other financial innovations to their customers as it will improve on the

keywords:

Financial Innovations, Financial Performance, e-banking, ICT, ARDL

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References:

Adewoye, J. O. and Omoregie, N. V. (2013) the impact of Automatic Teller machines on the
cost efficiency in Nigeria, Journal of Internet Banking and Commerce, 18(3), 1-21.

Adu, A. C. (2016) Cashless Policy and its effects on the Nigerian Economy, European Journal
of Business, Economics and Accountancy, 4(2)81-88.

Akinyele, A. I., Tajudeen, T.l., Olukunle, A. A. and Adedeji, L. O. (2019) Financial
Technology Innovation Adoption in the Banking sector in Nigeria and National
Economic Development, Journal of Association of Professional Bankers in Education,
5(1),1-30.

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