RESPONSE OF BANKS PERFORMANCE TO TECHNOLOGICAL BANKING SYSTEMS IN NIGERIA

Abstract

This study empirically examined the response of banks performance to technological banking systems in Nigeria. The problem therefore is that, inspite of the countless benefits of ICT on various sectors and sub-sectors of Nigerian economy, consensus is still yet to be reached on whether adoption of technology banking have translated into increased financial appreciation in the sub-sector. The study specifically ascertained the effects of banking technology such as Automated Teller Machine (ATM) banking, point of sales (POS) banking, web banking (WEB) and mobile (MOB) banking systems on net profit (or year profit) of deposit money banks in Nigeria. The study covered twelve (12) years period (2009-2020) whereas five deposit money banks which cuts across old and new generational banks were randomly selected and studied from a total of 29 quoted deposit money banks in Nigeria. Annual panel secondary data of the study variables were sourced from Central Bank of Nigeria (CBN) statistical bulletin and audited annual accounts and financial statements of the selected banks. Ex-post facto research design was adopted while analytical tools employed were descriptive and panel least squares regression analysis technique. Findings revealed that information technology captured by electronic payment systems lend positive but insignificant support to banks performance in Nigeria. The implication of the result is that, use of information technology in the banking sector should be encouraged. On this background, it was recommended, among others, that Nigerians should fully adopt technological banking systems for improved performance of the banking sector and the overall growth of the economy