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

Clems Ozegbe Uchenna (), Uchenna Joseph Prof. UWALEKE (), Friday Dr. ACHEMA (), Ugochukwu Nnamdi Otiko (), Abdulaziz Samaila Satumari () and Franklin Chukwueloke Okolie ()

International Journal of Finance and Accounting, 2025, vol. 10, issue 3, 38 - 59

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.

Keywords: ATM; Agency Banking; Operational Efficiency (search for similar items in EconPapers)
Date: 2025
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