Digital Service Delivery and Organizational Performance in Deposit Money Banks (Industry-Wide) in Nigeria

Abstract

This study examined the effect of digital service delivery on the organizational performance of deposit money banks in Nigeria using industry-wide annual data from 2013 to 2024. The study adopted an ex post facto research design and utilized a judgmental sampling technique. Secondary data were obtained from the Central Bank of Nigeria and other official sources. Organizational performance was measured using Return on Assets (ROA) and Return on Equity (ROE), while digital service delivery was proxied by ATM transactions, MOB transactions, and RTGS transactions. Data were analyzed using descriptive statistics, correlation analysis, diagnostic tests, and Ordinary Least Squares (OLS) regression with robust standard errors. The diagnostic tests revealed the absence of heteroskedasticity and serial correlation, while the VIF value of 8.08 indicated no serious multicollinearity. The regression results showed that ATM transactions exert a significant negative effect on both ROA and ROE, whereas mobile banking transactions have a positive and significant effect on organizational performance. However, RTGS transactions were found to have no significant effect on ROA and ROE. The models explained 59.03% and 73.49% of the variations in ROA and ROE, respectively. The study concludes that digital service delivery significantly influences the organizational performance of deposit money banks in Nigeria, with mobile banking emerging as the most beneficial digital channel. The study recommends increased investment in mobile banking infrastructure, improved management of ATM-related costs, and continuous enhancement of digital banking systems to improve organizational performance and competitiveness.

Keywords

• Digital Service Delivery
• ATM
• Mobile Banking
• RTGS
• Organizational Performance
• ROA
• ROE
• Deposit Money Banks

How to cite