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Impact of Digital Financial Services Innovation on the Performance of Deposit Money Banks in Nigeria, 2012 to 2024

Author

Listed:
  • Onyia, Chinedu Callistus

    (Department of Banking and Finance, Enugu State University of Science and Technology)

  • Agu, Bertram Onyebuchi

    (Department of Banking and Finance, Enugu State University of Science and Technology)

  • Ogbonna, Obinna Bright

    (Department of Banking and Finance, ESUT Business School)

Abstract

The main objective of the study was to investigate the impact of digital financial services innovations on the performance of deposit money banks in Nigeria within the period of 2012 to 2024. Specifically, the study examined the impact of the volume of Automated Teller Machine (VATM) digital financial services innovation on Return on Assets (ROA); evaluated the impact of the volume of Point of Sale (VPOS) digital financial services innovation on ROA; investigated the impact of the volume of mobile-based (VMOB) digital financial services innovation on ROA; and assessed the impact of the volume of web-based (VWBP) digital financial services innovation on ROA in Nigeria. The study employed the ordinary least squares regression technique using secondary data sourced from the Central Bank of Nigeria Statistical Bulletin and Statistics and Economic Reports for various years. The empirical findings revealed that the volume of ATM, POS, mobile-based, and web-based digital financial services innovations exerted a positive and statistically significant impact on the performance of deposit money banks in Nigeria. The study concluded that digital financial services innovation enhances bank performance and recommended the expansion and increased utilization of ATM, POS, mobile-based, and web-based digital finance channels to promote further growth in the Nigerian banking sector.

Suggested Citation

  • Onyia, Chinedu Callistus & Agu, Bertram Onyebuchi & Ogbonna, Obinna Bright, 2026. "Impact of Digital Financial Services Innovation on the Performance of Deposit Money Banks in Nigeria, 2012 to 2024," East African Finance Journal, East African Finance Journal, vol. 5(1).
    • Handle: RePEc:cwk:eafjke:2026-09
    DOI: 10.59413/eafj/v5.i1.9
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    References listed on IDEAS

    as
    1. Teck-Lee Wong & Wee-Yeap Lau & Tien-Ming Yip, 2020. "Cashless Payments and Economic Growth: Evidence from Selected OECD Countries," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 9(special i), pages 189-213.
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    3. Andrew W. Lo & Richard T. Thakor, 2022. "Financing Biomedical Innovation," Annual Review of Financial Economics, Annual Reviews, vol. 14(1), pages 231-270, November.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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