Effect of ICT on Financial Performance of Deposit Money Banks Listed on the Nigeria Exchange Group

Abstract

This study considered the effect of information and communication technology utilized by deposit money banks (DMBs) in carrying out financial transactions and services. The study hinged on the technology acceptance model in explaining the effect of the selected ICT variables; Automated teller machine, point of sale and Mobile banking on performance measured by Return on asset of listed DMBs in Nigeria. The study adopted the expost facto research design utilizing the panel data. Secondary data was sourced from audited financial statements of the sampled deposit money banks from 2010-2019. OLS regression was carried out in testing the formulated hypotheses. The findings revealed that mobile banking (MB) indicated a positive effect on the performance of deposit money banks. All the explanatory variables showed insignificant effect on the performance of DMBs in Nigeria. This implies that the increase or decrease in the number of ATMs, the number of POS centres and the volume of mobile banking transaction does not significantly influence the performance of the banks in terms of returns. The study recommends that banks consider more ICT innovations that will increase its performance.