Artificial Intelligence Expert System and the Financial Performance of Deposit Money Banks (DMBs) in Nigeria

Felix Unuesiri; Joshua Adewale Adejuwon

doi:10.56201/ijbfr.v10.no9.2024.pg39.54

📄 Download Paper

Artificial Intelligence Expert System and the Financial Performance of Deposit Money Banks (DMBs) in Nigeria

Felix Unuesiri & Joshua Adewale Adejuwon

Abstract

This study investigated the effect of Artificial Intelligence Expert System in on the Financial Performance of Deposit Money Banks in Nigeria. The study analysed the secondary data of selected DMBs for the period 2015 -2023 (9 years). The data were sourced from the Annual Reports of the DMBs, the Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicators to establish cause-effect relationships between the variables. Population of the study was the 27 DMBs in Nigeria as at 31st July, 2023, while the sample size was five (5) DMBs (Access Bank, Zenith Bank, UBA, First Bank and GT Bank). The sampling technique used was the non-probability convenience sampling method chosen based on the availability of the financial statements of the DMBs for the period under study. The study employed Error Correction Model (ECM) for time series regression to analyse equilibrium relationships in short run and long run behaviours. The findings showed that the resultant coefficients were positive and significant both during pre-Expert System adoption (coefficient = 1.25668<0.05) and 1.75328, p<0.05 for post-Expert System adoption respectively. The null hypothesis was therefore rejected and we accepted the alternate hypothesis to conclude that the deployment of AI Expert System impacted positively and significantly on the financial performance of DMBs in Nigeria. Based on the findings, we recommend that there should be strategic and realistic investment in AI Expert Systems by the DMBs to improve their financial performance.

Keywords

Artificial IntelligenceExpert SystemFinancial PerformanceDeposit Money Banks

References

Aazhvaar, V. (2019). Artificial intelligence in Indian Banking Sector: Challenges and Opportunities. International Journal of Advanced Research, 7(5), 1581-1587. Aduaka, U. &Awolusi, O., (2020). Electronic Banking and Profitability in the Nigerian Banking Industry, Information Management and Business Review, 12(2(I)), 20-37. Amaduche, S, et al. (2020). The Impact of Electronic Banking on the Operations and Performance of Deposit Money Banks in Nigeria, International Journal of Operational Research in Management, Social Sciences and Education, 6(1), 45-55. Acemoglu, D. (2002). Technical Change, Inequality, and the Labour Market. Journal of Economic Literature, 40, 7-72. Akyuz, A. (2021). Marketing and Financial Services in the Age of Artificial Intelligence. In: Dinger H., Yuksel S. (eds) Financial Strategies in Competitive Markets. Contribution to Financial and Accounting. Springer, chain 327 – 340. Cioffi, R. (2020). Artificial Intelligence and Machine Learning Applications in Smart Production: Progress, Trends, and Directions – MDP, 9. Davis, F., et al, (1989) User Acceptance of Computer Technology: A Comparison of Two Theoretical Models. Management Science, 35, 982-1003. Elumelu, T.O. (2019). The Future of Finance-Technology at play. Conference paper delivered at Lagos State University, Faculty of Management Sciences, 2019 Annual Public Lecture, 1. Nwankwo, S. &Agbo, E. (2021), Effect of Electronic Banking on Commercial Bank Performance in Nigeria, European Journal of Accounting, Finance and Investment, 7 (1), 68-81. Oniore, J. &Okoli, U. (2019), Impact of Electronic Banking on the Performance of Money Deposit Banks in Nigeria, Noble International Journal of Economics and Financial Research, 4(9), 83-90., Ononokpono D., et al (2023), Artificial Intelligence Milieu: Implications for Corporate Performance in the Nigerian Banking Industry. International Journal of Research and Innovation in Applied Science,| 8(5), 34-44.

Artificial Intelligence Expert System and the Financial Performance of Deposit Money Banks (DMBs) in Nigeria

Abstract

Keywords

References

More Articles from IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH