ABSTRACT
This study investigates the effect of financial innovation on bank performance. It furthers examine the impact of NEFT, ATM, POS and WEB on Return on Equity. This study was anchored on innovation diffusion theory and Schumpeter theory of innovation. The study adopted an ex-post facto research design because the data for the study are secondary data which were sourced from Central Bank of Nigeria Statistical Bulletin,
Ex-post facto research method was adopted in this study. The population was drawn from all Deposited Money Banks in Nigeria which were sourced from Central Bank of Nigeria Statistical Bulletin between 2012-2021.
Findings from the study showed there is no significant impact of NEFT on ROE; there is significant impact of ATM on ROE; there is no significant impact of POS on ROE and there is no significant impact of WEB on ROE
It can be concluded that financial innovations have negative impact on the performance of deposit money banks. The findings recommended that Banks should modernize their financial services by fully adapting to mobile banking, according to the report, not only to provide jobs but also to enhance market share. It would be useful to increase security in areas where banking has not yet reached; Technological aspect of mobile banking should be encouraged to ensure awareness is created to enlist more users. The regulatory authorities should commit more funds in the area of public awareness, enlightenments and sensitizations in order to increase the use of e-payment channels.
Keywords: Bank, Financial, Innovation, ROE, ATM, POS, WEB, Performance
Word counts: 244
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Research Objectives
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Definition of Terms
CHAPTER TWO: LITERATRE REVIEW
2.1 Conceptual Review
2.1.1 Financial Innovation
2.1.2 Products Innovation
2.1.3 Service Innovation
2.1.3.1 Online Banking
2.1.3.2 Prepaid Cards
2.1.4 Process Innovation
2.2 Bank Performance
2.2.1 Liquidity Level
2.2 The Effect of Financial Innovation and Bank Performance
2.2 Theoretical Review
2.2.1 Innovation Diffusion Theory
2.2.2 Schumpeter Theory of Innovation
2.3 Empirical Review
CHAPTER THREE: METHODOLOGY
3.1 Research Design
3.2 Population of the Study
3.3 Sample Size
3.4 Source of Data
3.5 Model Specification
3.6 Method of Data Analysis
CHAPTER FOUR: RESULTS AND INTERPRETATION
4.1 Test of Hypotheses
4.2 Interpretation of Result
4.3 Discussion of Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Conclusion
5.3 Recommendations
References
