THE IMPACT OF GLOBAL TRENDS IN DIGITAL PAYMENT SYSTEMS ON FINANCIAL PERFORMANCE AND OPERATIONAL EFFICIENCY OF LISTED DEPOSIT MONEY BANKS: EVIDENCE FROM MOBILE BANKING AND OTHER DIGITAL CHANNELS
Abstract
This study examines the effect of global trends in digital payment systems on the financial
performance of listed deposit money banks in Nigeria. The main topic of the study is digital
payment systems and financial performance. The specific objectives were to assess the effect
of Automated Teller Machine (ATM) transactions, Point-of-Sale (POS) transactions, and
mobile payment transactions on Return on Assets (ROA) of listed deposit money banks in
Nigeria. The study adopted an ex-post facto research design, relying on secondary data
sourced from the Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System
(NIBSS), and annual reports of selected listed deposit money banks over 10 years. The method
of data analysis employed includes descriptive statistics and panel regression analysis using
the Random Effect Model to determine the relationship between digital payment channels
and financial performance. The findings revealed that ATM transactions have a positive and
significant effect on ROA, POS transactions also show a positive and significant effect, while
mobile payment transactions have the strongest positive and most significant influence on
ROA. The model indicates that digital payment systems explain about 74% of the variation in
financial performance, confirming strong explanatory power. The study recommends that
banks should increase investment in mobile banking infrastructure, expand POS networks,
and improve ATM service efficiency to enhance profitability. The implications of the findings
suggest that the adoption and expansion of digital payment systems significantly improve
banking performance, enhance customer convenience, and strengthen competitiveness in the
Nigerian banking sector.
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Published in UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT
ISSN: 1596-9911
This article appears in our peer-reviewed academic journal
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