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In this study, the performance of money deposit institutions was examined in relation to technological innovation. 200 UBA employees in total were chosen at random to participate in the study. Questionnaires were utilised by the researcher as the instrument for gathering data.

Descriptive The study’s research design was a survey. The survey used a total of 133 respondents, including human resource managers, accountants, customer service representatives, and marketers. Simple percentages and frequencies were used to analyse the data, which were presented in tables.



In a modern economy, innovation is a significant occurrence that enables businesses to adopt a new and improved method of conducting their business.

According to Sloan (2003), innovation in the financial services sector refers to the act of developing and disseminating new or modified financial instruments, technologies, institutions, and markets that ease access to information, trading, and payment methods.

In general, innovation is essential for the growth of businesses and people who represent fresh concepts, quality, and convenience. Innovation in the financial sector, according to Nofie (2011), is the introduction of a new or improved product and/or procedure that reduces the cost of producing current financial services or transactions.

According to Batiz-Lazo and Woldesenbet (2006), financial innovations are employed by banks as powerful strategic variables to outperform the competition and have become a vital tool for the bank to enhance performance, grow, and sustain its effectiveness on the market.

A successful innovation that establishes a distinct competitive position can give a bank a competitive edge in an environment that is extremely turbulant and result in superior financial performance (Roberts & Amit, 2003).

Financial innovation adoption is more influenced by customer acceptability than by seller offerings in terms of patronage and use. Before determining whether to use a financial innovation product, customers will want to consider the degree of their risk exposure, actual and implied transactional costs, the “carrot” (financial incentives), and associated advantages tied to it.

In other words, before clients decide to adopt, fraud risks, financial incentives, turnaround time, and transaction costs are taken into account. According to Abubarka and Tasmin (2012), the concerns of rising customer expectations for customer service delivery,

information system reliability, and rivalry in the financial services industry are what drive the innovation revolution. It is one thing to innovate, according to Woldie, Hinson, Iddrisu, and Boateng (2008), but quite another for the innovation to be accepted by customers.

The swift transition to electronic distribution is mostly due to client discontent with branch banking as a result of lengthy lines and subpar customer service (Karjaluoto, Mattila, & Pento, 2002).

These studies make it abundantly clear that improving innovation is essential for the banking sector to deliver high-quality, on-time services in a market that is changing quickly.

Globalisation and world trade liberalisation have an impact on banking product development and higher-quality service delivery. It encouraged the creation of a number of innovative financial ideas and new financial products.

Securitization, derivatives, margin loans, and other developments in the banking sector are only a few examples. In contrast to technological advancement, none of these have significant effects on Nigeria.

According to Akamavi (2005), recent fundamental banking reforms, such as deregulation, recapitalization, proliferation, increased competition, and commercial growth on a global scale, have led to innovation in the financial services sector.

Therefore, in this study, financial innovation is defined as the use of technology to send and receive instructions from a financial institution where an account is stored. According to Ovia (2005), financial innovation is the delivery of banking services to clients via telecommunications technology.

According to Pradhah and Mishra (2008), this service covers the system that enables clients of financial institutions—individuals or businesses—to access their accounts, conduct transactions, or gather information on financial products and services.

The key amenities here include POS, EFT, MB, ATM, and IB. Currently, financial innovation in Nigeria has altered how banking sectors provide services to their clients.

It has decreased operating expenses, enhanced customer service, assisted in customer retention, decreased branch traffic, and reduced the number of branch employees (Parisa, 2006).

Customers become increasingly intelligent and demanding as a result of the financial services industry’s quick pace of technology innovation, mergers, and acquisitions (Adeoti, 2008).

The widespread acceptance of financial innovation items that are opportune for Nigeria’s national economic and financial development and market sophistication has been made possible and supported by ICT devices, systems, and processes.


Commercial banks must be operated efficiently and successfully by continuously utilising financial innovations due to the rapidly shifting competitive environment, globalisation, economic changes, regulation, privatisation, and similar factors (Auta, 2010).

Any deposit money bank in Nigeria is required to use the skills and technology essential to maintain its competitiveness and gain a competitive edge by attracting new customers while keeping existing ones, due to the advent of new technologies, products, processes, markets, and competition in the country.

The level and rate of financial innovation adoption in Nigeria have not been encouraging, being very low (Agboola, 2006), despite various financial incentives to entice old customers and attract new customers to embrace and use financial innovation, causing low financial returns, and poor quality of life.

This is despite the fact that innovation is undeniably important in advancing financial inclusion and deepening (Bamidele, 2006). According to reports, Nigeria’s most common issues with using cutting-edge banking services—and the ensuing loss of time and money—include long lines, transaction errors, queuing, insecurity, and network breakdowns.

These issues also pose a fraud and security risk. This significantly lowers the customer’s opinion of the level of service provided, which lowers the patronage of the business and the adoption of financial innovations (Onaolapo, Salami, & Oyedokum, 2011).

It is apparent that despite the banks’ investments and efforts in this area, many consumers are unwilling to embrace innovative financial services. This has shown some scholars, like Lawrence (2010) and Agbemabiese, Patrick, and Joseph (2015),

that understanding the factors that influence the acceptance and use of these products is crucial for planning a bailout, defending the vast resources committed, and ensuring the expansion of the banks.

A deeper comprehension of the factors that influence the acceptance of financial innovations is essential to promoting their spread in developing nations (Zhao, 2008).

Strategic options can be developed for researchers and practitioners regarding how to support the growth of banks and financial innovation in developing countries by developing a thorough understanding of the factors and conditions that influence a country’s ability to fully adopt and realise its benefits.

There have been relatively few empirical investigations in Nigeria, despite the widely acknowledged significance of financial innovations and a large descriptive literature. The banks have been deprived of information because of this predicament (Soludo, 2008).

Ndlovu and Siyavora (2014) claim that although financial innovation has improved bank efficiency, user adoption has been relatively modest, depriving banks of attractive returns on their investments in a timely manner. Although there are many financial innovation services, there isn’t enough proof of consumer approval or their attitude towards adoption (Muniruddeen, 2007).

Customers’ acceptance, confidence, and adoption of the system must be experimentally tested in order to acknowledge that 10 financial innovations have fully acquired popularity in Nigeria.

In order to improve financial innovation adoption, which is currently thought to be at a lower ebb among the consumers of Deposit Money Banks in Nigeria, this study aims to identify the drivers and impediments of financial innovations.


The study’s aims are;

To ascertain the impact of financial incentives on the adoption of technological innovation in Nigerian Deposit Money Banks

To determine how much fraud risk influences the uptake of technological innovation in Nigerian deposit money banks

to ascertain how quickly technological innovations are adopted in Nigerian deposit money banks.

To evaluate the impact of transaction costs on the adoption of technological innovation in Nigerian deposit money banks.


The researcher developed the following research hypotheses in order to successfully complete the study:

H0: Financial incentives have no impact on deposit money banks in Nigeria’s adoption of technological innovation.

H1: Financial incentives have an impact on the adoption of technological innovation in Nigerian deposit money banks.

H02: The adoption of technological innovation in Nigeria’s deposit money banks is unaffected by transaction costs.

H2: Transaction costs have an impact on how technological innovations are adopted by Nigerian deposit money banks.


In light of the current trend in the global financial sector, where technological culture is en vogue and various countries are starting financial reformative procedures, the research study becomes importance.

The study evaluated how customers have used financial innovation in Nigerian deposit money banks during the previous ten years. This is significant given the government’s interest in financial inclusion and deepening,

as well as the banks’ level of resource commitment to enhancing customer satisfaction, strengthening their competitive position, and the slowing growth of e-commerce (Agboola, 2006; Soludo, 2008; Onaolapo, et al., 2011). Researchers, practitioners, and policy makers are among stakeholders who should be interested in the study.


The study’s focus is on how technology advancement affects money deposit banks’ performance. The study’s scope was constrained due to a constraint the researcher encountered;

a) AVAILABILITY OF RESEARCH MATERIAL: The researcher’s access to suitable research material limits the investigation.

b) TIME: Because the researcher must juggle the study with other academic obligations and exams, the time allotted for the investigation does not improve wider coverage.


technical innovation: A technical innovation is a new or better product or procedure with significantly different technological properties from what was previously available.

New items (product innovations) or processes (process innovations) that have been commercialised constitute technologically implemented product innovations.

Money held at a bank is referred to as a deposit in the financial context. A deposit is a deal in which money is given to someone else to keep safe. Yet another definition of a deposit is a sum of money used as security or collateral for the delivery of a good.

Performance: The ability of a bank to use its resources in a way that enables it to accomplish its goals is reflected in the bank’s performance.

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