Algorithmic Governance and Organizational Performance of Deposit Money Banks in Akwa Ibom State

Uduak-Obong Ekpo-Ufot, Essiet Edet Elijah and Baazim Okwechime
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Uduak-Obong Ekpo-Ufot: University of Uyo
Essiet Edet Elijah: University of Uyo
Baazim Okwechime: University of Uyo

East African Finance Journal, 2026, vol. 5, issue 4

Abstract: This study examines the relationship between algorithmic governance and organisational performance of Deposit Money Banks in Akwa Ibom State, Nigeria. As banking institutions increasingly adopt automated decision-making systems to enhance operational efficiency, understanding how these technologies influence overall performance becomes imperative, particularly in the Nigerian financial services sector. The study adopts a cross-sectional survey research design, collecting primary data from representatives of Deposit Money Banks at a single point in time. This design is appropriate for examining the relationship between algorithmic governance (independent variable) and organisational performance (dependent variable), enabling the identification of patterns and relationships while accommodating practical research constraints in the Nigerian banking context. Findings reveal a significant positive relationship between algorithmic governance and organisational performance. Banks that effectively implement algorithmic governance frameworks demonstrate improved operational efficiency, enhanced customer trust, and better financial outcomes. The integration of automated systems with robust governance protocols enables more consistent and transparent decision-making processes. Based on these results, the study concludes that algorithmic governance is a strategic driver of banking performance. To optimise these benefits, the paper recommends that bank management invest in advanced algorithmic infrastructure, ensure strict data privacy and security, foster human-AI collaboration, implement continuous system audits to detect algorithmic bias, and establish clear ethical governance frameworks. These measures collectively enhance digital operations, build stakeholder confidence, and drive overall efficiency in the banking sector.

Keywords: Algorithmic Governance; Organisational Performance; Deposit Money Banks (search for similar items in EconPapers)
JEL-codes: G21 G28 M15 O33 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:eafjke:2026-31

DOI: 10.59413/eafj/v5.i4.1

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