Abstract

This study examined the influence of financial technology on the financial performance of deposit money banks in Nigeria. Pooled OLS panel regression analysis was employed as the technique of estimation to assess the annual data of eight deposit money banks from 2016 to 2021. The dependent variable was return on asset which proxy bank financial performance while automated teller machines, point of sale, mobile banking and unstructured supplementary service data were proxies for technological innovation. The results indicate that mobile banking and unstructured supplementary service data have a significant positive effect on the financial performance of deposit money banks in Nigeria. Also, ATMs exert a significant negative effect on the financial performance of deposit money banks while POS exert a non-significant positive effect on the financial performance of deposit money bank in Nigeria. The study concludes that technological innovation has a significant impact on the financial performance of deposit money banks in Nigeria. The study recommends that banks should intensify their awareness campaign on the availability and use of technological innovation products for more customers to embrace it. Banks should improve their mobile banking network services so that their customers can perform their transactions wherever they are without a hitch.