Impact of Information Communication Technology on Performance of Deposit Money Banks in Nigeria

Abstract

The study examines the impact of Information Communication Technology (ICT) on the performance of Deposit money banks in Nigeria. Secondary data were collected from the quoted Deposit Money Banks and the central bank of Nigeria statistical bulletin. The study covered 10 years spanning from 2010 through 2019. The study used return on Assets as trend in scientific research and proxy for bank performance while the value transactions done through the ATM, Development POS, MP-Mobile payment platforms and value of transactions done through NIBSS Instant Payment (NIPV) were used to proxy Information Communication Technology (ICT). In other to ensure the validity and the reliability of our data, the study therefore subjected the data to a diagnostic test using Descriptive Statistic Analysis, Correlation Matric, Herteroskadaticity testing and ordinary least square analysis with the help of econometric view (E-view 10).Empirical evidences from the hypothesis tested indicated that that (ATMV and POSV) has a positive and significant impact on return on assets (ROA) of banks in Nigeria. On the other hand, MPV has positive but insignificant impact and finally, NIPV and were found to have a negative but significant impact on ROA of quoted banks in Nigeria. The study recommends that every bank in Nigeria should not only invest heavily on ICT especially the POS, but should distribute same to business outlets where business owners and customers will have access to smooth and hassle-free transactions. It is therefore necessary for the government to emphasize the need for more policies that will boost the efficiency in utilization of ICT equipment by reducing the cost of acquiring them so as to reduce cost and boost the growth of the economy.