Effects of Technology Innovation on Financial Performance of Commercial Banks in Nigeria

Abstract

This study examines the effect of banking innovations on financial performance of listed commercial banks in Nigeria. This study adopted correlational research design, Secondary data was collected from all listed Commercial Banks in Nigeria between the period 2008 to 2019. The data was extracted from the annual reports of the listed Commercial Banks in Nigeria. Correlation analysis used to measure the relationship between variable. Specifically, the researcher used multiple regression analysis to establish if the relationship between the independent variable and the dependent variables. The study found that ATM has a significant impact on the FP, IB has a significant impact on the FP and MB has a strong significant impact on the FP. Based on the findings the study concludes that technology innovation has a positive impact on the financial performance of listed Commercial Banks in Nigeria. Based on the foregoing findings and conclusions, the research recommends that Commercial Banks managers and government should properly adopt strategy that will encourage businessmen and general public in using automated teller machine which will improve effectiveness and efficiency of the banking sector and therefore financial deepening and Internet banking should easily accessible by customers, so that quick service and convenience is maintained hence improving financial deepening. At the same time constantly serviced in order to provide reliability of the services.