A CRITICAL ANALYSIS OF FINANCIAL INNOVATION AND ITS EFFECT ON THE FINANCIAL PERFORMANCE OF NIGERIAN BANKS

Authors

  • Chijioke Emmanuel Okoro Department Of Banking and Finance, School of Financial Studies, Port Harcourt Polytechnic, Rumuola Port Harcourt Rivers State, Nigeria.
  • Ngozi Chinyere Nwogwugwu Department of Finance & Banking, Faculty of Management Sciences, University of Port Harcourt, Port Harcourt, Rivers State, Nigeria
  • Ugochukwu Isaac Eze Department of Economics, Faculty of Social Sciences, School of Graduate Studies, University of Port Harcourt Port Harcourt, Rivers State Nigeria

Keywords:

Financial Innovation, mobile banking, automated teller machine, online banking, point of sale.

Abstract

The research investigated the impact of financial innovation on the performance of Deposit Money Banks in Nigeria. A time series data covering the periods, 2009 – 2021 was used. The assets of the Deposit Money Banks were used as the dependent variables while the Point of sales, Automated Teller Machine, Internet Banking and Mobile Banking served as the independent variables. The researcher used the ARDL model in the analysis. Further, post-test analysis using serial autocorrelation, heteroskedasticity, CUSUM were conducted. It was discovered that POS had the highest performance while internet banking had the least. More so, the variables are statistically significant. The authors recommended that internet accessibility should be made cheaper for easy access and usage. Banks should reduce the ownership cost of POS machine and rural banks should conduct periodic seminars and knowledge dissemination programmes for their rural customers so as to increase their knowledge of mobile banking activities.

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Published

2025-01-16

Issue

Vol. 11 No. 3 (2023)

Section

Articles