FINANCIAL TECHNOLOGY AND PERFORMANCE OF DEPOSIT MONEY BANK IN NIGERIA: A DISAGGREGATED ANALYSIS

Abstract

The Nigerian banking sector has experienced rapid digital transformation. Deposit money banks have invested in several digital technologies. Financial technology indus­try encompasses technology-enabled firms offering financial services, as well as entities providing technology services directly to financial institutions. The study examined financial technology and the performance of deposit money banks in Nigeria. Specifically, the study examined the influence of crowd funding financial

platforms on the performance of deposit money bank in Nigeria. Assess the influence of block chain on the performance of deposit money bank in Nigeria. Examine the influence of virtual currencies on the performance of deposit money bank in Nigeria and investigate the influence of internet banking on the performance of deposit money bank in Nigeria. The study adopted ex-post facto research design because the data for the study are secondary data that already exist in various international and national publications. Econometric technique involving Augmented Dicker Fuller tests for unit roots and The Ordinary Least Squire (OLS) were used to analyze the data. The regression result indicates that crowd funding financial platforms, block chain, virtual currencies and internet banking has significant influence on the performance of deposit money bank in Nigeria. The study thus concludes that financial technology has positive and significant influence on the performance of deposit money bank in Nigeria. Amongst the recommendation is that Nigerian financial services industry should put adequate security mechanism in place to forestall fraudulent practices, invest in crowd funding financial platforms that are easy to use; reliable, works with speed, and guarantees privacy, affordable charges. Nigerian financial services industry should embark on intensive awareness campaign and sensitization of the citizenry on the influence of block chain and E-wallet in Nigerian financial services industry. Nigerian financial services industry should have in build camera that will be sending every transaction and picture to everybody transaction to the financial services industry through the use of virtual currencies. Internet banking has positive and significant influence on the performance of deposit money bank in Nigeria. Nigerian financial services industry should be encourage internet banking transactions to improve E-wallet in Nigerian financial services industry.