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. 10 2024
DOI: 10.56201/jafm.v10.no10.2024.pg137.146

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Electronic Banking Services and Profit Performance: The Case of Unstructured Supplementary Service Data (USSD)

Ebimotimi Agbalaiko, Goodhead & Prof. Stanley Ogoun

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Abstract

The study examined the role of Unstructured Supplementary Service Data (USSD) on the profit performance of commercial banks in Nigeria between 2009 and 2022. The study adopted an ex-post facto research design, utilizing annual time series secondary data extracted from the Central Bank of Nigeria (CBN) Statistical Bulletin. The population consisted of all 24 commercial banks licensed by the Central Bank of Nigeria, making the census survey technique appropriate for the study. The time series data was converted to quarterly values, and the Ordinary Least Squares (OLS) regression technique was employed for analysis. Descriptive statistics and multiple regression methods were used to analyze the data. The OLS regression model results revealed that revenue from USSD had a positive but minimal effect on the profit performance of commercial banks in Nigeria during the study period. Therefore, commercial banks should invest in enhancing their USSD platforms to boost customer engagement by expanding the transactions ceiling, and introducing service charges for higher volumes to enhance earnings, while providing hedging to mitigate the associated risk towards upscaling profit uptake from the USSD service gateway.

keywords:

Commercial Banks, financial landscape, accessible, transactions volume, gateway

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