Nigerian Deposit Money Banks' Financial Innovation and Performance

Abstract

The process of developing and then popularizing new financial instruments, as well as new 
financial institutions, markets, and technologies, is known as financial innovation. The study's 
primary goal is to look at how financial innovations affect Nigerian deposit money banks' 
performance. The specific goals are to: evaluate the impact of automated teller machines on the 
performance of Nigerian deposit money banks; evaluate the impact of mobile banking on the 
performance of Nigerian deposit money banks; examine the impact of internet banking on the 
performance of Nigerian deposit money banks; and look into the impact of point of sale on the 
performance of Nigerian deposit money banks. Because the study used secondary data from 
the Central Bank of Nigeria Statistical Bulletin, CBN Annual Report, and Statement of 
Accounts, it used an ex post facto research design. The study's findings show that although 
online banking has a negative and negligible impact on return on asset, automated teller 
machines, mobile banking, and point of sale have a favorable and considerable impact. 
According to the study's findings, financial innovation has improved the profitability of 
Nigerian commercial banks and increased their return on assets. The government should 
provide sufficient infrastructure for the internet, telecommunications, and electricity supply, 
among other recommendations. To improve this infrastructure, industry stakeholders will need 
to collaborate with other stakeholders. It is imperative that banks, switching companies, card 
companies, and other organizations strive to enhance the quality, standardization, and 
maintenance of their equipment. When it comes to lost or stolen cards, fraud, and other 
customer complaints about electronic payments, the banks need to enhance their customer 
service and responsiveness. Public education and knowledge of the advantages of electronic 
payments are desperately needed. To increase public trust in electronic payments, all parties 
involved must enhance system security and integrity. In mobile and online commerce systems, 
it is also necessary to provide user-friendliness and customer-interactive features.