Impact of Financial Innovation on Nigerian Bank Performance (a Case Study of Five Selected Deposit Money Banks)

Student: Emmanuel Ayomikun Akinola (Project, 2025)
Department of Banking and Finance
Osun State Polytechnic, Iree, Osun State

Abstract

Abstract This study examines the impact of financial innovation on Nigerian bank performance, with specific focus on the relationships between Internet Banking (ITB), Point of Sale (POS), and Automated Teller Machines (ATM) on Return on Assets (ROA). The research employs a correlational design and utilizes secondary data from the financial statements of five selected deposit money banks over a period spanning from 2001 to 2022. The analysis employs multiple regression techniques to evaluate the significance of the electronic banking channels on bank performance. The findings indicate that ATM usage presents a positive impact on ROA (β = [specific value], P < 0.05), establishing its significance in enhancing bank performance. Conversely, the POS channel exhibits a negative but statistically insignificant effect on ROA. The study concludes that the implementation of effective electronic banking strategies, particularly ATM services, contributes significantly to improved financial outcomes for banks. Based on these findings, it is recommended that Nigerian banks invest in the enhancement of ATM services and conduct public awareness campaigns to promote the benefits of electronic banking. Moreover, banks should develop specialized programs to address the challenges associated with the POS systems to optimize their effectiveness.

Keywords
Banks ROA ATM POS and Internet Banking
Filters
Institutions