Driving Sustainable Growth: Exploring The Nexus Between Financial Innovation And Banking Sector Profitability In Nigeria
DOI:
https://doi.org/10.64137/31080030/IJFEMS-V2I1P101Keywords:
Financial Innovation, Banking Sector Profitability, Mobile Banking Technologies, Digital Payment Systems, Blockchain TechnologiesAbstract
This paper investigates the effect of financial innovation on the profitability of the banking sector in Nigeria, with the new focus on the most popular mobile banking, digital payments, and blockchain technologies. It uses the data of 26 commercial banks available from the period of 2009 to 2024 to compare the profitability of them using return on assets ROA as the main measure. The data comes from the Central Bank of Nigeria CBN which contains digital innovations such as Web Pay, Mobile Pay, NIP, NEFT, Remita, and Central Pay. The results show that mobile banking and blockchain technologies have a more significant positive effect on profitability than the impact of digital payments which is different. The study urges strengthening mobile platforms, replacing the existing digital infrastructure with the new one, and implementing blockchain technologies.
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