EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON OPERATIONAL EFFICIENCY OF NIGERIA’S BANKING SECTOR

Abstract

Innovations in information and communication technology (ICT) have brought rapid changes in modern banking operations. The banking environment occasioned by these innovations is also changing the perception of bank customers towards operational efficiency and customer satisfaction. This study was conducted to examine the effect of ICT adoption on the operational efficiency of Deposit Money Banks in Nigeria. The study was anchored on the technology acceptance theory and adopted the ex post facto research design. The population of the study consists of all listed DMBs in Nigeria. Time series data extracted from CBN Statistical bulletin and annual reports of DMBs for the period of 2012 – 2021 were used for the study. Findings of the study show that ICT adoption in form of web payment, value of ATM and POS transactions have a positive but non-significant effect on operational efficiency of the sampled DMBs. The study concludes that adoption of ICT positively influences the operational efficiency of listed DMBs in Nigeria and recommends amongst others the need for DMBs to improve on their online payment systems so as to facilitate ease of payment among bank customers.