FINANCIAL TECHNOLOGY ADOPTION AND PROFITABILITY DEPOSIT MONEY BANKS IN NIGERIA
Global Research Journal of Accounting and Finance · Vol. 7, Issue 2, pp. 1–19 · 2026/8/12
NWACHUKWU, Ifeoma Gladys https://orcid.org/0009-0001-9754-2433 · Department of Accountancy, Alvan Ikoku Federal University of Education, Owerri, Imo State
OKIKE, Celestine O. https://orcid.org/0000-0002-0681-1352 · Department of Accountancy, Alvan Ikoku Federal University of Education, Owerri, Imo State
CHUKWU, L. C. https://orcid.org/0009-0004-9651-9241 · Department of Accountancy Imo State University, Owerri Imo State
Abstract
Research Objective: This study investigates the effect of financial technology (FinTech) adoption on the profitability of Deposit Money Banks (DMBs) in Nigeria, anchored on the Technology Acceptance Model (TAM) and Financial Intermediation Theory.
Methodology: Annual data covering the period 2015–2024 were sourced from the World Bank Data, Central Bank of Nigeria (CBN) Statistical Bulletin, and the Nigeria Interbank Settlement System (NIBSS). The study employs the Ordinary Least Squares (OLS) regression technique to evaluate the influence of mobile banking (LMB), point-of-sale transactions (LPOS), and Automated Teller Machine (LATM) on the logarithm of return on assets (LROA), a proxy for bank profitability.
Findings: Descriptive statistics reveal that LROA remained relatively stable over the study period (Mean 0.3119, SD 0.1058), while LATM exhibited the highest variability (Mean 5.5238, SD 1.5683). Regression results indicate that the model explains 64% of the variation in profitability (R² 0.640, Adjusted R² 0.460), with the overall model significant at the 10% level. Individually, LATM had a negative and marginally significant effect on profitability, while LMB and LPOS recorded statistically insignificant impacts.
Conclusion: The findings suggest that although FinTech adoption collectively influences bank profitability in Nigeria, the effectiveness of individual FinTech channels depends on operational efficiency and strategic alignment.
Recommendations: The study recommends that Nigerian DMBs optimize FinTech investments, enhance customer engagement, and balance asset utilization to maximize profitability gains.