Technological Disruptive Innovations (TDIS) and Financial Performance (FP) Of Deposit Money Banks (DMBS) In Nigeria


Victor Chukwunweike EHIEDU, Anastasia Chi-Chi ONUORAH & Chinyere Nkeiruka CHIGBO
Banking and Finance Department, Faculty of Management Sciences, Delta State University, Abraka.


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.