Effect of Financial Innovation on the Performance of Deposit Money Banks in Nigeria

This study centres on financial innovation and performance of deposit money banks in Nigeria. The main objective is to ascertain the effect of financial innovation on the performance of deposit money banks in Nigeria. The specific objectives are to evaluate the effect of automated teller machine, point of sale, web internet transfer and mobility of payment on the performance of deposit money banks in Nigeria proxied by the value of commercial bank deposits in Nigeria. The data employed were secondary data obtained from the Central Bank of Nigeria Statistical Bulletin for the period 2009 2020. This study employed ordinary least square OLS method of estimation to establish the effect of the independent variables on the dependent variable. The OLS is the most efficient method because of the ''Best Linear Unbiased Estimator'' BLUE properties. The analysis revealed that point of sale, payment mobility, automated teller machine and web internet had positive effect on the performance of deposit money banks in Nigeria for the period under study. This depicts that financial innovation helps in increasing profitability and return on assets of deposit money banks in Nigeria. Therefore, the study recommends among others that the government should put in place proper monetary and fiscal policies in order to promote financial innovations in Nigeria as the investigations in this study have proved to engender performance of deposit money banks in Nigeria. Chigozie Camillus Ibe | Dr. Chinedu Blessing-Mike Obialor "Effect of Financial Innovation on the Performance of Deposit Money Banks in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-6 , October 2022, URL: https://www.ijtsrd.com/papers/ijtsrd52040.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/52040/effect-of-financial-innovation-on-the-performance-of-deposit-money-banks-in-nigeria/chigozie-camillus-ibe