Effect of Bank Consolidation on the Financial Performance of Deposit Money Bank in Nigeria.

Student: Oluwadamilare Oluwapelumi Sogbeinde (Project, 2025)
Department of Accounting
Bamidele Olumilua University of Edu. Science and Tech. Ikere Ekiti, Ekiti State

Abstract

This study examines the effect of bank consolidation on the financial performance of deposit money banks in Nigeria, focusing on three key objectives: digital banking adoption, customer retention, and system integration. Bank consolidation, a strategic policy aimed at improving the financial stability and operational efficiency of banks, has significantly reshaped the Nigerian banking landscape. The research adopts qualitative insights to evaluate how consolidation has influenced the adoption of digital banking technologies, enhanced customer retention strategies, and streamlined system integration processes. Findings indicate that bank consolidation has accelerated digital banking adoption by providing the necessary capital for technology investments, thereby improving operational efficiency and customer experience. However, challenges in harmonizing legacy systems and sustaining customer loyalty in a competitive market remain significant concerns. The study concludes that while consolidation has positively impacted financial performance, banks must prioritize robust integration frameworks and customer-centric digital solutions to maximize long-term benefits. This research contributes to the discourse on banking reforms and offers practical recommendations for policymakers and industry stakeholders.

Keywords
effect consolidation financial performance deposit money nigeria
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