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

Chinedu Callistus Onyia, Bertram Onyebuchi Agu and Obinna Bright Ogbonna
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Chinedu Callistus Onyia: Department of Banking and Finance, Enugu State University of Science and Technology
Bertram Onyebuchi Agu: Department of Banking and Finance, Enugu State University of Science and Technology
Obinna Bright Ogbonna: Department of Banking and Finance, ESUT Business School

East African Finance Journal, 2026, vol. 5, issue 1

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.

Keywords: Digital Financial Services; Innovation; Automated Teller Machines; Point of Sale; Mobile Banking; Web-Based Banking; Return on Assets (search for similar items in EconPapers)
JEL-codes: G21 G23 O33 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:eafjke:2026-09

DOI: 10.59413/eafj/v5.i1.9

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