Effect of information and communication technology on the efficiency of deposit money banks in Nigeria
Effect of information and communication technology on the efficiency of deposit money banks in Nigeria

Summary/Abstract: Purpose. This study examined the effect of information and communications technology (ICT) on the efficiency of deposit money banks in Nigeria during the period 2006–2020. Specifically, the effect of volume of transaction on automated teller machine, mobile banking, internet banking and point of sale terminals on the efficiency of deposit money banks was evaluated.Results. The result of Granger Causality test revealed that information and communications technology channels of Automated Teller Machine (ATMs), mobile banking, internet banking, and point of sale (POS) terminals have no significant effect on the efficiency of deposit money banks in Nigeria. Volume of transactions on ATMs, mobile banking, and POS terminal have negative insignificant relationship with efficiency of deposit money banks. On the other hand, volume of transactions on internet banking was negatively and non-significantly linked with efficiency of deposit money banks in Nigeria. The non-significant effect of ATMs transactions points to the need for deposit money banks in Nigeria to ensure availability of money in the ATMs machines.Scientific novelty. This study is pursued within the framework of the Technology Acceptance Model. The theory is relevant as it explains user’s acceptance of ICT strategies and usage in an organizational context. This finding will add credence to the Technology Acceptance Model postulation on information and communications technology and efficiency of the banking industry.Practical value. This research will be of tremendous importance to the banks’ staff as well as managers (top management staff) and investor in the banking industry. This is by the way of providing valuable information on the issues and possible factors that can influence deposit money banks efficiency. The knowledge gained from this study will help make efficient use of information and communications technology gadgets. It will aid the efficiency and growth of banks, and possible provide investment in banking assets.

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