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Automated Teller Machine (ATM), Agency Banking and Operational Efficiency of Deposit Money Banks in Nigeria

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  • UCHENNA, Clems Ozegbe
  • Prof. UWALEKE, Uchenna Joseph
  • Dr. ACHEMA, Friday
  • OTIKO, Ugochukwu Nnamdi
  • SATUMARI, Abdulaziz Samaila
  • OKOLIE, Franklin Chukwueloke

Abstract

Purpose: The rapid advancement in technology is transforming the financial sector, positioning ATMs and agency banking as crucial innovations that significantly enhance the accessibility and efficiency of banking services. This study investigates the impact of Automated Teller Machines (ATMs) and agency banking on the operational efficiency of deposit money banks in Nigeria. The study objective was to assess the influence of Automated Teller Machines (ATMs) and agency banking on operational efficiency. Methodology: Utilizing an ex post facto research design, the study sampled ten deposit money banks listed on the Nigerian Exchange Group (NGX) as of 31 December 2023. Secondary data were collected from the Nigeria Inter-Bank Settlement System Plc, Central Bank of Nigeria statistical bulletins, and annual reports of the selected banks for the period of 2009 - 2023. Descriptive and inferential statistical techniques, including correlation and panel regression analysis were used to analyze the effect of ATM and agency banking on operational efficiency. Findings: The findings revealed that ATM usage has a significant positive effect on operational efficiency. Agency banking, measured through Point of Sale (POS) systems, also exhibited statistically significant effect on operational efficiency. The study concluded that technological advancements, particularly in the form of ATMs and agency banking, significantly contribute to the operational efficiency of banks in Nigeria. Unique Contribution to Theory, Practice and Policy: The study recommended that DBMs in Nigeria should continue investing in digital banking innovations to enhance performance and maintain competitiveness.

Suggested Citation

  • UCHENNA, Clems Ozegbe & Prof. UWALEKE, Uchenna Joseph & Dr. ACHEMA, Friday & OTIKO, Ugochukwu Nnamdi & SATUMARI, Abdulaziz Samaila & OKOLIE, Franklin Chukwueloke, 2025. "Automated Teller Machine (ATM), Agency Banking and Operational Efficiency of Deposit Money Banks in Nigeria," International Journal of Finance and Accounting, IPRJB, vol. 10(3), pages 38-59.
    • Handle: RePEc:bdu:ojijfa:v:10:y:2025:i:3:p:38-59:id:3388
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    References listed on IDEAS

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    1. Berger, Allen N. & Humphrey, David B., 1997. "Efficiency of financial institutions: International survey and directions for future research," European Journal of Operational Research, Elsevier, vol. 98(2), pages 175-212, April.
    2. Jonathan Oyerinde Adewoye & Nosa Victor Omoregie, 2013. "The Impact of Automatic Teller Machines On The Cost Efficiency of Nigeria," Journal of Internet Banking and Commerce, Nahum Goldmann, vol. 18(3), pages 01-21.
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