Impact of Digital Financial Services Innovation on the Performance of Deposit Money Banks in Nigeria, 2012 to 2024

Chinedu Onyia; Agu Bertram Onyebuchi; Obinna Bright Ogbonna

doi:10.59413/eafj/v5.i1.9

Authors

Onyia, Chinedu Callistus PhD Department of Banking and Finance , Enugu State University of Science and Technology Author
Agu, Bertram Onyebuchi PhD Department of Banking and Finance , Enugu State University of Science and Technology Author
Ogbonna, Obinna Bright, PhD Department of Banking and Finance , ESUT Business School Author

DOI:

https://doi.org/10.59413/eafj/v5.i1.9

Keywords:

Innovation, Digital, volume of web -based OLS, ROA

Abstract

The main objective of the study was to investigate the impact of digital financial services innovations on the deposit money banks in Nigeria within the period of 2012 to 2024. Specifically, the study aims to examine the impact of the volume of Automated Teller Machine (VATM) digital financial services innovation on Return on Asset (ROA) in Nigeria; evaluate the impact of the volume of Point of Sales (VPOS) digital financial services innovation on Return on Assets (ROA) in Nigeria; investigate the impact of the volume of mobile-based (VMOB) digital financial services innovation on Return on Asset (ROA) in Nigeria; and assess the impact of the volume of web-based (VWBP) digital financial services innovation on Return on Asset (ROA) in Nigeria. This study, conducted for the period from 2012 to 2024, utilized the ordinary least squares regression method to investigate the impact of digital financial services innovation on the performance of deposit money banks in Nigeria. Secondary data were sourced from the Central Bank of Nigeria's Statistical Bulletin and Statistics and Economic Reports for various years. Empirical findings revealed that the volume of ATM, POS, mobile-based, and web-based digital financial services innovation had a favorable and critical impact on the deposit money banks in Nigeria. Consequently, the study concluded that digital financial services innovation contributes to enhancing deposit money banks in the country. To promote further growth in the deposit money banks, the study recommends expanding the deployment and usage of digital finance channels such as the volume of ATM, POS, mobile-based, and web-based channels, encouraging their utilization for financial services innovation by participants.

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