IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 3 2025
DOI: 10.56201/jafm.vol.11.no3.2025.pg98.121

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Financial Innovation and Firm Survival of deposit Money Banks in Nigeria

Ujam, Oluchukwu Juliet Ofor, T.N. (Ph. D)

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Abstract

The objective of the study is to examine the effect of financial innovation on firm survival of deposit money banks in Nigeria. The study discomposed financial innovation into, point of sale transaction, internet banking transaction, automated teller machine transaction and firm survival proxy by net assets per share. The study adopted ex-post facto research design. The population of the study is made up of 14 quoted deposit money banks in Nigeria out of which 10 were used as sample size using purposive sampling technique to select the sample size and used least square regression model. The data used for this study were collected from the Statistical Bulletins of the Central Bank of Nigeria covering the period 2012 – 2023. The result of this study shows that point of sale is negative and statistically significant, internet banking transaction shows positive and insignificant result while automated teller machine indicates positive and statistically significant. The study conclude that the survival of deposit money banks in Nigeria is heavily influenced by the adoption and integration of various financial innovations, which are increasingly becoming crucial in the competitive banking sector. The recommend that banks executives are advised to reduce the reliance on point of sales (POS) transactions as a primary service offering. Instead, focus on optimizing and diversifying revenue streams to mitigate the negative impact on bank survival, enhance the revenue-generating potential of internet banking platforms by introducing value-added services and loyalty programs that can differentiate the bank from competitors and improve customer retention and continue to expand and maintain a robust network of automated teller machines (ATMs) to capitalize on their significant positive effect on bank survival, ensuring that ATMs are accessible, reliable, and meet customer demand efficiently.

keywords:

Financial Innovation, Point of Sale, Internet Banking, Automated Teller Machine, Firm

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