Analysis of the Effect of Digital Transformation on Operational Performance of Deposit Money Banks in Nigeria

Vollständiger Abstract

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The study examined the effect of digital transformation on operational performance of deposit money banks in Nigeria for the duration of 2001-2023 (23years). This was done in respect of measures of digital transformation, namely; Automated Teller Machine (ATM), Point of Sale (POS), Internet Banking (INTB) and Mobile Banking (MOB) and how it affects operational performance proxied with Efficiency Ratio (EFFR). The method of data collection used in this study was the secondary source of data (time series data), from the CBN Bank Supervisory Annual Report, CBN Statistical Bulletin and Nigeria Deposit Insurance Corporation (NDIC) Annual Reports for the period 2000-2022. The study conducted various statistical techniques, such as descriptive statistics, correlation analysis and other diagnostics tests. In view of the hypothesis formulated for this research, the method of data analysis chosen were the ordinary least square (OLS) regression analysis, using the computer software, E-VIEWs 9.0. The finding revealed that ATM and POS have positive significant effect on EFFR of DMBs in Nigeria while INTB and MB has negative insignificant effect on EFFR of DMBs in Nigeria. Based on the findings, the study concluded that digital transformation has a significant effect on operational performance of deposit money banks in Nigeria. Therefore, it is advised that banks should invest in digital transformation, which has been shown to improve the operational performance of Nigerian deposit money institutions. In order to effectively use digital transformation, banks should focus on services like Points of Sales (POS), Mobile Banking (MB), Automated Teller Machines (ATM), and Internet Banking (INTB).