Aisha Isa-Olatinwo, Prof Uche Uwaleke, Umar Abbas Ibrahim



Impact of Digital Financial Services on Financial Performance of Commercial Banks in Nigeria

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Since the introduction of information communication technology and the widespread use of the internet, the banking business has undergone considerable changes. Information and communication technology (ICT) is at the heart of Nigeria's current worldwide shift curve in the electronic banking system. In light of this, this study looked into the influence of digital financial services (DFS) on the financial performance of Nigeria's publicly traded commercial banks. The study aims to see if there is a link between the dependent variable, which is financial performance as assessed by banks' earnings-per-share (EPS), and the main independent variables, which are the volume of ATM and POS transactions as a proxy for digital financial services (DFS). Secondary data was employed in the study. The data was collected from the annual report of target banks and the Central Bank of Nigeria from 2012 to 2020. The study used both descriptive and inferential statistics in analysing the data. In general, the study revealed that digital financial services (DFS) have substantial and significant marginal effects on earnings per share in Nigeria’s banking sector. Thus, there exists a positive relationship between digital financial services (DFS) and bank financial performance. In conclusion, electronic banking has made banking transactions to be more accessible by bringing services closer to its customers hence improving banking industry performance. Thus, the study recommends that bank management should enhance digital banking to improve financial performance in commercial banks.


Digital Financial Services, Financial Performance, Commercial Banks


Cite this paper

Aisha Isa-Olatinwo, Prof Uche Uwaleke, Umar Abbas Ibrahim. (2022) Impact of Digital Financial Services on Financial Performance of Commercial Banks in Nigeria. International Journal of Economics and Management Systems, 7, 300-307


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