Electronic Payment Adoption and Deposit Money Banks Corporate Financial performance in Nigeria:Vector Error Correction Model
Abstract
Banking sector is experiencing a profound transformation powered by advancements in digital technology. Despite the swift adoption of digital banking solutions, significant challenges persist that could relate to money banks corporate financial performance in Nigeria. Thus, the aim of this study is to analyses and derived. Empirically the relationship between electronic payment adoption and deposit money banks corporate financial performance in Nigeria from 2014-2023. Adopting ex-post facto research design, panel data collected from Central Bank of Nigeria statistical bulletin, Nigerian Exchange Group, National Bureau of statistic and annual reports of the selected banks were analyzed using a robust methodological descriptive statistics, unit root test, pooled, fixed, and random effects modeling, Hausman and Breusch-Pagan Lagrange Multiplier test, cointegration and error correction model with the aid of E-view version 12.0. Empirical findings indicate that automated teller machine, mobile payment channels, internet payment channels significantly enhances earning per share. The study therefore conclude that electronic payment adoption significantly relate to deposit money banks corporate performance and recommends that It is recommended that banks should continue to expand their Automated Teller Machine (ATM) infrastructure since this investment improves market valuation, thereby strengthening investor confidence and market perception. Banks are encouraged to strategically deploy ATMs in underserved areas to widen accessibility and capture additional market share, ensuring equitable financial inclusion across urban and rural communities.
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