Effects of Technology Innovation On Fina

SSAAR (JMSE); Journal of March, 2020 Editions
Management Science and Entrepreneurship

Sub-Sahara African Academic
Research Publications Journal of Management Science &
March, 2020 Editions Entrepreneurship.
Vol.15, No.7, ISSN 2285-3138
EFFECTS OF TECHNOLOGY INNOVATION ON FINANCIAL PERFORMANCE OF

COMMERCIAL BANKS IN NIGERIA
NASAMU GAMBO (Ph.D)

Department of Business Administration, Federal University Wukari, Taraba
State.
Abstract
This study examines the effect of banking innovations on financial
performance of listed commercial banks in Nigeria. This study adopted
correlational research design, Secondary data was collected from all listed
Commercial Banks in Nigeria between the period 2008 to 2019. The data was
extracted from the annual reports of the listed Commercial Banks in Nigeria.
Correlation analysis used to measure the relationship between variable.
Specifically, the researcher used multiple regression analysis to establish if
the relationship between the independent variable and the dependent
variables. The study found that ATM has a significant impact on the FP, IB has
a significant impact on the FP and MB has a strong significant impact on the
FP. Based on the findings the study concludes that technology innovation has
a positive impact on the financial performance of listed Commercial Banks in
Nigeria. Based on the foregoing findings and conclusions, the research
recommends that Commercial Banks managers and government should
properly adopt strategy that will encourage businessmen and general
public in using automated teller machine which will improve effectiveness
and efficiency of the banking sector and therefore financial deepening and
Internet banking should easily accessible by customers, so that quick service
and convenience is maintained hence improving financial deepening. At the
same time constantly serviced in order to provide reliability of the
services.
Keywords: Financial Performance; Technology innovation; Internet Banking;

Mobile Banking; ATMs.
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Introduction
Innovation is an enterprise developing new products or production processes
in order to better execute its operations in the event that new products could
be based on new processes in the financial services sector and new financial
instruments, technological insights and markets facilitating access to
information, exchanges and means of payment (Solans, 2013). Lerner (2002)
points out that innovation are not only critical for companies in the financial
services sector, but also affect other companies. For example, to enable them
to raise more capital and at a lower cost than they could otherwise and that
innovation is an important phenomenon in all sectors of the modern economy.
In a study in 11 countries in Latin America, Yildirim and Philppatos (2017)
state that the rivalry between banks encourages the bank to engage in a
process of differentiating the products that it provides and can boosting
financial innovation. Yildrim and Philippatos (2017) find that a high degree of
foreign investment in Bankcapital is associated with a high level of
competitiveness. This improves the quality and differentiation of their
products and simulates financial innovation by introducing more modern
skills, management techniques and technologies. Size also facilitates the
diversification of business risks by launching various innovative projects
(Corroher, 2016), Anbalagan (2011). We found that some types of financial
innovation are driven by improvements in computer and telecommunications
technologies and that, for most people, the creation of automated teller
machines was a greater financial innovation than securitization backed by
assets.
Although in Nigeria the banking industry has continued to operate in a
competitive environment, many banks have introduced new innovative
products, processes, technologies and organizational innovations resulting in
greater efficiency and product differentiation. Technologically, banks have
been forced to provide multiple deposits, investments and loan products
through various distribution channels that include decent ATMs, branches,
phones and the Internet. Commercial banks are now beginning to move
towards innovation and marketing innovation. This includes marketing
innovation and the creation of new services, marketing innovation and
innovations in delivering customer banking services and marketing
innovation and creativity in marketing and providing those services to
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professionals in a timely and environmentally friendly manner. This has

allowed management to engage with both parties' concerns and goals.
Innovation management has allowed the bank to respond to internal or
external opportunities, and to use its innovations to introduce unique
concepts, processes or products. All of this has resulted in all banks getting a
higher rate of growth depending on the number of customers and the base of
their assets. However, many of these benefits are taken on time and therefore
there are no permanent benefits and can therefore not be relied upon as a
prerequisite for growth and survival. Also financial isolation still stands at
around 25 % according to CBN Financial Research (2018), leading to missed
targets in terms of market growth, banks have been losing market share to
money transfer companies. It is possible that customers are happy to choose
a bank based on reliability, price and convenience rather than innovation and
product management.
Despite the undeniable importance of financial innovation in explaining
banking performance, the impact of innovation on performance is still
misunderstood for two main reasons: first, insufficient understanding of the
drivers of innovation and, second, the impact of these innovations on the
banks performance remains poorly tested (Mabrouk & mamoghli, 2010). A
study from Deyoung & Nolle (2007) takes an approach to the performance-
innovation relationship that does not take into account the history of
innovation within and outside the banking organization, which could
influence this relationship. Prooja and (2009) Franscesa and Claeys (2010)
Batiz-laizo and Woldesenbet (2006) and Mwanis and Muganda (2011) have
produced mixed results with respect to the impact of innovations on bank
performance. Pooja and Singh (2009) and Franscesa and Claeys (2010) in
their studies conclude that financial innovations have the least impact on bank
performance, while o and woldesenbet (2006) and mwania and muganda
(2011) concluded that financial innovation had a significant contribution to
the performance of banks. It is central to this mixed conclusion that has
created and necessitated the need to conduct a study from the Nigeria context
to establish the effect of banking innovations on financial performance of
listed commercial banks in Nigeria. The specific objectives are to:
i. identify at which extent Automated Teller Machines contributes to
financial performance of Listed Commercial Banks in Nigeria.
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ii. determine at which extent Mobile Banking contributes to financial

performance of Listed Commercial Banks in Nigeria.
iii. examine at which extent Internet Banking contributes to financial
performance of Listed Commercial Banks in Nigeria.
Based on the objectives of the study, the following null hypotheses are raised:
H01: Automatic Tellers machine do not significantly influence to financial
performance of Listed Commercial Banks in Nigeria
H02: Mobile Banking do not significantly influence to financial performance of
Listed Commercial Banks in Nigeria.
H03: Internal banking do not significantly influence to financial performance
of Listed Commercial Banks in Nigeria
Literature Review
Concept of Technological Innovation
An innovation is defined as a new idea or a new or substantially improved
good or service that has been commercialized or any significantly new process
for the commercial production of goods and services (Roger, 1995). Fisher
(1998) notes that technology, when applied in the current banking
environment, is divided into three categories: client-independent (technology
involving a client performing and completing a transaction with a bank totally
independent of any human contact with the customer) eg ATMs, MMs and
Internet Banking); customer-assisted (a bank employee will use client-
assisted technology as a resource to complete a transaction, for example, call
center customer service managers will use a Customer Relationship
Management (CRM) system to understand customer profile and provide
instant responses to customer requests for up-to-date billing and banking
transactions (Gutek & Welsh, 1999) and seamless customer technology that
represents the true heart of banking and customers never see it but the
customer wait.
Concept of Financial Performance

Financial performance is a subjective measure of how well an organization
can use assets from its primary mode of business and generate revenues. This
term is also used as a general measure of the firm's overall financial health
over a given period of time, and can be used to compare similar firms across
the same industry or to compare industries or sectors in aggregation. There
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are many different ways to measure financial performance, but all measures
should be taken in aggregation. Line items such as revenue from operations,
operating income or cash flow from operations can be used, as well as total
unit sales (Jayawardhera & Foley, 2018). Profit is the ultimate goal of the firm.
To measure profitability, there are a variety of ratios used of which Return on
Assets, Return on Equity and Net Interest Margin are the major ones (Murthy
& Sree, 2013). ROA is a major ratio that reflects the profitability of a bank. It
is a ratio of Income to its total assets. It measures the ability of an
organization's management to generate revenue by utilizing company assets.
In other words, it shows how efficiently the resources of the company are used
to generate revenue. It further indicates the effectiveness of the management
of the company in generating net income from all the resources of the
institution. Wong (2014) stated that a higher ROA indicates that the company
is more efficient in using its resources.
There are different measures of organizational performance. However, the
most used is profitability. Profitability measures the extent to which a
business generates profit from the factors of production: labor, management
and capital. The profitability analysis looks at the relationship between
revenue and expenses and the level of benefits relative to the size of the firms
investment (Gilbert & Wheelock, 2007). The ROA, the ROE, the operating
profit margin and the net income of companies are four useful measures of
corporate profitability. The ROA measures the return on all assets of the
company and is often used as an overall index of profitability. The higher the
value, the more profitable the company is. ROE measures the rate of return on
owner equity employed in the business. It is useful to look at the ROE against
the ROA to determine if the company is making a profitable return on their
borrowed money. Operating profit margin measures the return on capital per
dollar of gross revenue of the company. Recall that the company has two ways
to increase its profits by increasing the profit per unit produced or by
increasing the volume of production while maintaining the profit per unit. The
operating profit margin focuses on the unit-produced component of
profitability and the asset turnover ratio (described below) focuses on the
volume of the production component to generate a profit (Crane, 2011).
Net business income comes directly from the income statement and is
calculated by matching the company income to the expenses incurred to
create that income, plus the gain or loss from the sale of the company fixed
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assets. The net income of the business represents the owner return for the
unpaid family operator and labor force, the owner management and equity.
Like working capital, net business income is an amount in absolute dollars,
not a ratio; it is therefore difficult to make comparisons with other firms
because of differences in the size of the firm (Gilbert and Wheelock, 2007).
Theoretical framework
This section explores the different theories and models that can explain the
effect of technological innovation on the financial performance of commercial
banks. Several theories have been advanced: these include; diffusion of the
theory of innovation innovation of rupture Theory of creative destruction.
Diffusion of Innovation Theory

Roger theory (1995) on the diffusion of innovation (DOI) is a model
commonly used in information systems research to explain the adoption of
new technologies by users. Rogers defines diffusion as 'the process by which
an innovation is communicated over time by a member of a social society'
(Rogers, 1995). An innovation is an idea or object that is perceived as new
(Rogers, 1995). Roger theory (1995) on the diffusion of innovation (DOI) is a
model commonly used in information systems research to explain the
adoption of new technologies by users. Rogers defines diffusion as 'the
process by which an innovation is communicated over time by a member of a
social society' (Rogers, 1995). An innovation is an idea or object that is
perceived as new (Rogers, 1995). Diffusion theory is relevant because it
explains why banks are adopting technical innovations. One of the reasons
why banks adopt technical innovations are relevant benefits. This means that
banks that adopt technical innovation have a relatively better financial
advantage than those that do not.
Disruptive Innovation Theory

Disruptive innovation is probably one of the most important theories of
innovation of the last decade. The basic underlying concepts circulated so well
that as early as 1998, a year after the publication of the theory, people used
the term without referring to Clayton Christensen, Harvard professor, or his
book, Dilemma de (Harvard Business School Press). The term disruptive
innovation as we know it today appeared for the first time in the best-seller
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of 1997. The dilemma of the innovator. In the book, Harvard Business School
professor Clayton Christensen explained why some radical innovations
reinforced the incumbent position in a given sector, as predicted by previous
models (for example, the Henderson-Clark model). Specifically, he thoroughly
analyzed the record industry that could be found in our economy. Just
consider 35% per year, from 50 kilobytes in 1967 to 1.7 megabytes in 1972,
12 megabytes in 1981 and 1100 megabytes in 1995. The upsetting theory is
relevant to explain the type of technology that banks are adopting. Banking
technology is disruptive because it removes the traditional banking system
Schumpeterian Theory of Creative Destruction

Schumpeter (1939), who saw innovations as a perpetual threat of creative
destruction, the essential engine of growth rates in a capitalist system.
Schumpeter\u0027s thinking has evolved over the course of his life to the
extent that some scholars have disseminated his original ideas when
innovation relies heavily on exceptional individuals willing to assume
exceptional risks as an act of will, that is, to say entrepreneurs, from his last
thought: recognized role of large companies in organizing and supporting
innovation. This led him to focus on the role of oligopolies in innovation,
which was later considered the main contribution of his work. (Freeman,
1994).
Schumpeter (1928) emphasized the discontinuous and disruptive nature of
technological change in capitalism, which brings the inseparable combination
of insatiable growth in the short run and the long run. He was not a
technological determinist, but recognized the social and organizational
strength that played a key role in his cyclical process of industrial change.
Schumpeter argued that entrepreneurs, who could be independent inventors
or R & D engineers in large companies, offered the opportunity to make a new
profit through their innovations. In turn, the demo groups attracted by the
super-profits would launch a wave of investments that would erode the profit
margin of innovation. However, before the economy can balance a new
innovation or define innovations, Kondratievl cycles emerge to revive the
business cycle. Despite his ideas about the role of innovation, Schumpeter still
did not really explain the source of innovation. He was able to emphasize his
role in the synchronization of economic cycles but did not address its source.
This allowed Keynesian economists to argue that investment levels were the
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cause of innovation. It was not the unity of the 1960s that economists began
to look again for the source of innovation. Researchers like Abramo Vitz
(1956) and Solow (1957) have emphasized the importance of innovation.
Explain. According to data on the United States economy from 1909 to 499,
Solow showed that only 12.5% of the increase in production per capita.
Empirical Review
Aragba-Akpore (2018) on the application of information technology in
Nigerian banks and emphasizes that information technology is becoming the
back end of the regeneration of banking services in Nigeria. He cited Diamond
Bank Limited Diamond Integrated Banking (DIBS) and the Electronic Chip
Card (ESCA) account of all state-owned banks as part of efforts to create
sophisticated banking. Ovia (2012) found that the banking sector in Nigeria
was increasingly dependent on the development of information technology
and that the IT budget for this sector was much higher than that of any other
sector in Nigeria. He claimed that the online system had facilitated Internet
banking in Nigeria as evidenced by some website launch sites. He also found
that banks now offer their customers the ability to manage an account in any
branch, regardless of the account domiciled branch. Cashless transactions are
now possible in our society. This suggests that larger banks with a more
centralized structure were more likely to adopt SBCs. The use of the
technology of the UBCB always seems to be aimed mainly at large banking
organizations. However, a recent study suggests that small banks now often
use the consumer credit score of the main owner of the business (Barger,
2007).
The dramatic rise in individual Internet usage in the 1990s has created the
possibility of a new form of banking organization. According to Delgado
(2017), in mid-2002, there were approximately 35 Internet-only banks and
20 others in the United States. However, in Europe, almost all of these banks
were affiliated with existing instructions, while in the United States, be novo
operations This may explain why most or all of the closure) or established a
physical presence for complete their Internet base. This suggests that the
dominant technology is clicks and mortar. Gakure (2017) study of the
influence of banking innovations on the profitability of commercial banking in
Kenya concluded that bank innovations had a statistically significant influence
on bank profitability. This means that the combined effect of banking
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innovations in this research is statistically significant in explaining the bank

profitability commercial banks in Kenya. In Kenya, banks have taken more
than a decade to increase their earning capacity and control by adopting
innovations such as mobile Internet banking and agency banking. Kihumba
(2018), the reasons for innovation, the financial performance of 43 banks
between 2000 and 2017, how each factor has brought innovation to the
Kenyan market and how innovation generates annual revenue, the volume of
business , the customer turnover and the reduction in operating costs share
and geographical coverage of the bank. He noted that some financial
institutions are innovating to use their excess capacity and maximize their
revenues within existing capabilities.
Malhotra (2019) in the study on the banks impact on bank performance and
risk found that, on average, Internet banks are larger, more profitable and
more operationally efficient. They also found that Internet banks had higher
quality assets and were better managed for construction and equipment
expenses, and that Internet banks in India depended in essence on deposits.
They also found that small banks that adopt internal banking have a negative
impact on profitability. Mabrouk (2019), in his study on the dynamics of
financial innovation and the performance of banking enterprises: context of
the emergence of a banking sector, analyzed the effects of the adoption of two
types of financial innovations, namely product innovation (telephone bank
and SMS bank, etc.) and process innovation (magnetic stripe card (debit, ATM
and credit card)) ATM machine (ATM: electronic payment terminal etc.) on
the performance of banks, analyzing in particular the behavior of adoption,
the first mover in the adoption of Innovation and the simulator of the first
movements. They discovered that the concept of the first intuitive engine in
product innovation enhances the profitability process initiative has a positive
effect on profitability and efficiency. Banks that mimic the first less efficient
and effective engine. Nader (2011) analyzed the profitability of Saudi Arabia
commercial banks between 1998 and 2007. The results of his study indicate
that the availability of a single number of ATMs and a number of branches
have had a positive effect on the profitability of Saudi banks. On the contrary,
he found that the number of point-of-sale terminals available in OPC banking
did not improve profitability.
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Methodology
This study adopted correlational research design, which was involve the
collection of longitudinal data in 2010 to 2019. The target population of the
study was being all listed Commercial Banks in Nigeria. The study used census
sampling technique to adopt all the population as the sample size of the study.
Three independent variables were being used in the study: These are ATMs,
Mobile Banking and Internet banking. ATMs will be measured by a number of
ATMs, at the Deposit listed Money Banks in Nigeria. Mobile banking will be
measured by numbers of electronic bills payments, fund transfers. Internet
banking will be measured by online loan application; balance inquiries bill
payment, stop payment request. Financial bank, performance will be
dependent variables and will be measured by return on assets. The researcher
used secondary data which will be extracted from the annual reports of the
listed Commercial Banks in Nigeria. Correlation analysis used to measure the
relationship between variable. Specifically, the researcher used multiple
regression analysis to establish if the relationship between the independent
variable and the dependent variables were statistically significant
Model Specification
The model will be shown below:
Y =ɑ + β 1 X 1 + β 2 X 2 + β 3 X 3 + ε
FPi,t= α + β1ATMi,t + β2MBi,t + β3IBi,t + εi,t
Where:
FP = Financial Performance
ATM = Automatic Teller Machine
IB = Internet Banking
MB = Mobile Banking
β1 – β3 = Coefficient of independent variable.
i = bank identifier
t = time
ε = Stochastic Error term (Disturbance term).
Data Presentation and Analysis

This section will provide an analytical perspective of the data used in this
particular study and how the results of this study will affect the overall
perspective on the achievement of the research objectives.
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Descriptive Statistics
In the study examined the effects of technology innovation on financial
performance of deposit listed money banks in Nigeria. The descriptive and
correlation was analysis under study. The figures are given in table 1.
Table 1 Descriptive Statistics
Mean Std. Deviation
FP 3.0480 .12926
ATM 3.2757 .38268
MB 3.3375 .32987
IB 3.1056 .03073
Source: SPSS Output, (2020)
The table 1 shows the innovation with the mean score and the standard
deviations from the means of each variable in the study. In the table of
financial performance (FP), ATM, MB and IB are 3.0480, 3.2757, 3.3375 and
3.1056 respectively across the entire firm under the study. The standard
deviations recorded by FP, ATM, MB and IT were minimal showing an
indication that there was minimal variation in the variables between the firms
under study.
Table 2 Correlations
FP ATM IB MB
Pearson Correlation FP 1.000 .433 .356 -.277
ATM .433 1.000 -.369 .673
MB .356 -.369 1.000 -.811
IB -.277 .673 -.811 1.000
Correlation coefficient varies from -1 to +1. A +1 coefficient is an indication
of a perfect correlation while a –1 shows a perfect negative correlation. In
table 4.11, the correlation coefficient for the variables was positive and
significant showing a clear indication that there is a correlation between
financial decision and Performance in cement firms except for IB which had a
negative correlation.
Test of Hypotheses and Discussion of Results

Regression analysis are used to measure the effect of the independent variable
to the dependent variable of hypothesis 1, 2 and hypothesis 3 and proper
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interpretation and analysis techniques were used to explain the hypotheses

testing.
H01: Automatic Tellers machine do not significantly influence to financial
performance of Deposit Listed Money Banks in Nigeria
H02: Mobile Banking do not significantly influence to financial performance of
Deposit Listed Money Banks in Nigeria.
H03: Internal banking do not significantly influence to financial performance
of Deposit Listed Money Banks in Nigeria
Table 4 Model Summaryb
Model R R Adjusted R Std. Error of the Durbin-
Square Square Estimate Watson
1 .891a .794 .790 .05917 2.509
a. Predictors: (Constant), ATM, MB, IB
b. Dependent Variable: FP
The table above shows, R adjusted is 79.4% indicating how the statistical
measures in the above study are closer to the fitted regression line. In this
study we relied on adjusted R squared because of the number of study
variables in the prediction of the dependent variable. The standard error
shown in the study is .05917 which indicates a high accuracy of the prediction
made in this study. This is a clear indication that 79% percent of changes in
financial performance of listed deposit money banks in Nigeria could be
attributed to innovation under study. R in this study is shown by the
correlation coefficient which determines the relationship between the study
variables. Durbin Watson value of 2.509 shows there is no autocorrelation.
From the above findings, we can, therefore, conclude that there is a positive
correlation between the study variables.
Table 5 ANOVAa
Model Sum of Df Mean F Sig.
Squares Square
1 Regression 2.124 3 .708 202.219 .000b
Residual .550 157 .004
Total 2.673 160
a. Dependent Variable: FB
b. Predictors: (Constant), ATM, MB, IB
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Table 5 shows the ANOVA presentation. The population parameters were

found to have a significant p-value of 0% which is lower than the 0.001. This
is clear evidence that the data used in the study was adequate and reliable for
concluding the variables under study since the value of significance (p-value)
is lower than 5%. The F statistic critical at 5% level of confidence was 202.219,
the study concludes that the overall model is significant and that ATM, MB and
IB are influencing FB in listed Deposit Money in Nigeria.
Table 6 Coefficientsa
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) 18.841 1.147 16.430 .000
ATM .409 .018 1.211 22.576 .000
MB .094 .027 .241 3.556 .000
IB .415 .358 1.287 15.118 .000
a. Dependent Variable: FB
The established multiple linear regression equation is

Y=18.841+0.409X1 + 0.094X2 + .415X3 + e.
In the above regression equation, it was established that holding the
innovation in the regression namely: Automatic Teller Machine (ATM), Mobile
Banking (MB) and Internet Banking (IB) at a constant zero, financial
performance of listed Commercial Banks in Nigeria will be at 18.841. Further
analysis from the study and the regression indicates that, the relationship
between ATM and FB is significant and positive with a coefficient of .409 and
a p-value of 0.000, a unit increase in ATM would result to increase to the FB
by a factor of 0. 409, this suggests that the ATM has significantly positive
impact on the FB during the period of the study. Based on this, the study
rejects the null hypothesis one (H01) which states that Automatic Tellers
machine do not significantly influence to financial performance of Deposit
Listed Money Banks in Nigeria. As a result, the study deduces that ATM has a
significant impact on the FB of listed Commercial Banks in Nigeria during the
period of the study.
From the coefficient table, the analysis from this study and the regression
indicates that, the relationship between MB and FB is significant and positive
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with a coefficient of 0.094 and a p-value of 0.000, a unit increase in MB would

result to increase to the FB by a factor of 0.094, this suggests that the MB has
significantly positive impact on the FB during the period of the study. Based
on this, the study rejects the null hypothesis two (H02) which states that
Mobile Banking do not significantly influence to financial performance of
Deposit Listed Money Banks in Nigeria. As a result, the study deduces that MB
has a significant impact on the FB of listed Commercial Banks in Nigeria
during the period of the study.
In addition, from table 4.13, the analysis of study and the regression indicates
that, the relationship between IB and FB is significant and positive with a
coefficient of 0.415 and a p-value of 0.000, a unit increase in IB would result
to increase to the FB by a factor of 0. 415, this suggests that the IB has
significantly positive impact on the FB of listed cement firms in Nigeria during
the period of the study. Based on this, the study rejects the null hypothesis
three (H03) which states that Internal banking do not significantly influence to
financial performance of listed Commercial Banks in Nigeria. As a result, the
study deduces that IB has a significant impact on the FB of listed Commercial
Banks in Nigeria during the period of the study.
Discussion of Findings and Implication

The study found that ATM has a p-value of 0.000 and a beta value of 0.409
which is significant at 5%. This signifies that ATM has a positive impact on the
FB of listed Commercial Banks in Nigeria. It, therefore, implies that for every
increase in ATM, FB increases by 40.9%. This finding is however in conformity
with that of Akinruwa (2013) & Aliyu (2017).
The study also found that MB has a p-value of 0.000 and a beta value of 0.094
which is significant at 5%. This signifies that MB has a positive and significant
impact on FB of Deposit Listed Money Banks t firms in Nigeria. It, therefore,
implies that an increase in MB leads to increase in FB by 9.4%. This study is
however in conformity with Nersia, (2005); Nusrat & Tarun, (2014) & Aliyu,
(2017).
Finally, the study found that IB shows a p-value of 0.000 and a beta value of
0.415 which is significant at 5%. This signifies that IB has a positive, strong
and significant impact on FB. It, therefore, implies that an increase in FB leads
to increase in FB by 41.5%. This study is also in conformity with Nersia,
(2005); Nusrat, & Tarun, (2014) & Aliyu, (2017).
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Summary of Major Findings

In summary, the regression indicates that the relationship between ATM and
ROA is significant and positive with a coefficient of .409 and a p-value of 0.000.
Therefore, a unit increase in ATM would result to increase to the FB by 40.9%;
this suggests that the ATM has a significantly positive impact on the FB of
listed cement firms in Nigeria during the period of the study. Based on this,
the study rejects the null hypothesis one (H01) which states that there is no
significant relationship between ATM and FB of listed Commercial Banks in
Nigeria. As a result, the study deduces that ATM has a significant impact on
the FB of Deposit Listed Money Banks in Nigeria during the period of the
study.
The regression result indicates that the relationship between MB and FB is
significant and positive with a coefficient of 0.094 and a p-value of 0.000.
Therefore, a unit increase in MB would result to increase to the FB by 9.4%;
this suggests that the MB has a significantly positive impact on the FB of
Deposit Listed Money Banks in Nigeria during the period of the study. Based
on this, the study rejects the null hypothesis two (H02) which states that there
is no significant relationship between MB and FB of listed Commercial Banks
in Nigeria. As a result, the study deduces that MB has a significant impact on
the FB of listed Commercial Banks in Nigeria during the period of the study.
Finally, the regression result on the relationship between IB and FB indicates
that, is significant and positive with a coefficient of 0.415 and a p-value of
0.000. Therefore, a unit increase in IB would result to increase to the FB by
41.5%; this suggests that the IB a significantly positive impact on the FB of
listed Commercial Banks in Nigeria during the period of the study. Based on
this, the study rejects the null hypothesis three (H03) which states that there
is no significant relationship between IB and FB of listed Commercial Banks
in Nigeria. As a result, the study deduces that IB has a significant impact on
the FB of listed Commercial Banks in Nigeria in Nigeria during the period of
the study.
Conclusion
The research examined the influence of technological innovation on financial
performance of listed Commercial Banks in Nigeria. This finding has
imperative implications for banks management and the firm as a whole in
Nigeria in particular listed banks in Nigeria. As these banks have a tendency
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to have inadequate resources, as such managers to centre on activities which

generate the highest impact on financial performance. The study found that
ATM has a significant impact on the FP, IB has a significant impact on the FP
and MB has a strong significant impact on the FP. Based on the findings the
study concludes that technology innovation has a positive impact on the
financial performance of listed Commercial Banks in Nigeria.
Recommendations
Based on the foregoing findings and conclusions, the research recommends
that;
4. Commercial Banks managers and government should properly adopt
strategy that will encourage businessmen and general public in
using automated teller machine which will improve effectiveness
and efficiency of the banking sector and therefore financial
deepening.
5. Internet banking should easily accessible by customers, so that quick
service and convenience is maintained hence improving financial
deepening. At the same time constantly serviced in order to
provide reliability of the services.
6. Banks in Nigeria should continue with the popularization of mobile
banking in the industry as this has a positive effect on their financial
performance.
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Effects of Technology Innovation On Fina

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SSAAR (JMSE); Journal of March, 2020 Editions

Management Science and Entrepreneurship

EFFECTS OF TECHNOLOGY INNOVATION ON FINANCIAL PERFORMANCE OF

NASAMU GAMBO (Ph.D)

Keywords: Financial Performance; Technology innovation; Internet Banking;

professionals in a timely and environmentally friendly manner. This has

ii. determine at which extent Mobile Banking contributes to financial

Concept of Financial Performance

Diffusion of Innovation Theory

Disruptive Innovation Theory

Schumpeterian Theory of Creative Destruction

innovations in this research is statistically significant in explaining the bank

Data Presentation and Analysis

Test of Hypotheses and Discussion of Results

interpretation and analysis techniques were used to explain the hypotheses

Table 5 shows the ANOVA presentation. The population parameters were

The established multiple linear regression equation is

with a coefficient of 0.094 and a p-value of 0.000, a unit increase in MB would

Discussion of Findings and Implication

Summary of Major Findings

to have inadequate resources, as such managers to centre on activities which

Ajayi, L. B. (2014). Effect of cashless monetary policy on Nigerian banking

Maswadeh, S. (2018). The effect of the ownership structure on earnings

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