Analysis of Emerging Technologies and Banking Industry Service Delivery in Nigeria
Chibuzo Josephine Gabriel-Okwuchi *
Banking and Finance Department, Okija Campus, Madonna University, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
Developments in the financial sector has put pressure on Banking industry in Nigeria in order to keep pace with trends in global financial system and emerging technologies. The extent of adaptation to the emerging technologies within the Nigerian banking sector performance output, remains pertinent to the banking sector, the economic planners and to academic interest. The specific objective of this paper is to analyze the effect of selected emerging financial technologies (Fintech) on banking service delivery output in Nigeria, for the period of 2005 to 2022. Source of data is CBN Statistical Bulletin. The selected Fintech include: Point of sale (POST), Automated Teller Machine (ATMT), Agency Banking (ABT) and Internet Banking (IBT). The study applied OLS, Unit root test, co-integration, and error correction model for the econometric analysis. The major results showed that ATMT, POST, ABT had significant positive impact on banking service performance output (BSP), while IBT had significant negative impact on BSP in Nigeria. Overall, the emerging technologies have made positive contributions to the banking sector service delivery in Nigeria with exception of IBT. The study therefore recommends that the providers should lay more emphasis on resolving network problems so as to improve its networking for effective uses of internet banking. To increase strategies that tackle barriers such as insecurity/fraud. Avoidable glitches in the use of Fintech should be encouraged, more especially, improving on its networking. The Policy makers should create more awareness and formulate guidelines that aim at increasing availability of Fintech, especially ATMT in the rural areas. Finally, properly executed agency banking, with more capacities should be promoted with incentives. This is necessary to include the financially excluded, and to create a sustainable confidence in banks which, have been lacking among the players.
Keywords: Financial intermediation, emerging technologies, agency banking, internet banking, point of sale