Victor Chukwunweike EHIEDU, Anastasia Chi-Chi ONUORAH & Chinyere Nkeiruka CHIGBO
Banking and Finance Department, Faculty of Management Sciences, Delta State University, Abraka.
Technological Disruptive Innovations (TDIS) and Financial Performance (FP) Of Deposit Money Banks (DMBS) In Nigeria
Authors
Abstract
This study examined the relationship between Technological Disruptive Innovations (TDIs) and
Financial Performance (FP) of Deposit Money Banks (DMBs) in Nigeria from the period of
1992 to 2021 (30years). In order to evaluate the effect of TDIs on FP of DMBs in Nigeria, the
following measures TDIs, namely; Automated Teller Machine (ATM), Point of Sale (POS),
Internet Banking (INTB), Nigeria Interbank Settlement System (NIBSS) and Nigeria Electronic
Fund Transfer (NEFT) in relation to FP proxied with Return on Equity (ROE) in Nigeria. The
CBN Statistical Bulletin, CBN Annual Report, CBN Bank Supervisory Annual Report, and
Nigeria Deposit Insurance Corporation (NDIC) Annual Reports from 1992-2021 were used to
acquire data for the research. Descriptive statistics, correlation analysis, diagnostics tests, unit
root test, and multiple regression analysis were used to assess the research hypotheses. Based on
the results of the previous chapter, ATM has a negative significant effect on ROE, POS has a
positive significant effect, INTB has a negative insignificant effect, and MOB has a positive
significant effect. NIBSS has a positive significant effect on ROE with a p-value (sig. value) of
0.0000, while NEFT has a negative significant effect with 0.0540. Managers of DMBs should
periodically train customers about ATMs, their benefits, risk exposure, physical and electronic
security, and how to avoid financial loss from hackers. They should also train bank staff in short
periods to familiarise them with modern developments in sophisticated technology to improve
DMBs' FP in Nigeria.