FINANCIAL TECHNOLOGY AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA

Abstract

This study analyzed the effect of financial technology on financial performance of Commercial banks in Nigeria for the period of 2012-2023. The specific objectives were to evaluate the effect of automated teller machine, point of sales, mobile banking and internet banking on the financial performance of Commercial banks in Nigeria. The variables were financial performance as the dependent variables while automated teller machine, point of sales, mobile banking and internet banking was the independent variables. Panel Least Squared (PLS) method of data analysis was used. The study also employed descriptive statistics, Hausman test and correlation in this study. From the analysis result the study found that, Point of sales has no significant effect on financial performance of Commercial banks in Nigeria. (t=3.583072=0.009) Automated teller machine has no significant effect on financial performance of Commercial banks in Nigeria (=0.569002, p=0.5721). Mobile banking has significant effect on financial performance of Commercial banks in Nigeria. (t=3.378671, p=0.0006). The study concluded that FinTech variables (volume of transactions on ATM, internet banking, MBB and POS) significantly influenced changes in the performance of Commercial Banks in Nigeria. The study concludes that financial technology has significant and positive effect on financial performance of commercial banks in Nigeria. The study recommended amongst others that; Point of sales has significant effect on financial performance, it should be encourage because POS systems simplify and streamline transactions, reducing errors and improving efficiency in the banking business. Automated teller machine has no significant effect, CBN should as a matter of urgency compel all the commercial bank in Nigeria to fix their ATM and load it with cash for customers to have seamless and round-the-clock access. Mobile banking has significant effect on financial performance, commercial banks should upscale their investments in information and communication technology (ICT) infrastructure to enhance internal capacity to provide uninterrupted services, as well as develop capacity resolve customer complaints real-time