Linking Financial Technology Adoption to Firm Value: An Empirical Study of Nigerian Deposit Money Banks

Author: Joshua Sunday Durodola, Tirimisiyu Kunle Lasisi, Adeadebayo Abdulkabir Shuaib, Chimenka Ezeribe, Murtadho M. Alao

Abstract

This study adopts an ex-post facto research design to investigate the impact of Financial Technology on the value of traded deposit money banks in Nigeria. The population of the study comprises of all the 14 deposit money banks listed in Nigerian Exchange Group as of 31st December, 2024. The study employed a Census strategy to select all the traded banks as sample size for the study. Secondary data from financial report and account of the sample banks and Fin-tech Association of Nigeria was collected using data collection forms. Secondary data for five years from 2020 to 2024 on the independent variables, dependent variable and control were collected. Generalized Linear Model (GLM) was employed to analyse the data. The study's findings indicate that the value of traded deposit money banks in Nigeria is positively and significantly affected by fin-tech service and bank size. The research also found that the value of Nigerian traded deposit money banks is negatively correlated with the growing number of fin-tech enterprises. Nigerian traded deposit money banks should prioritise investments in financial technology to keep ahead of competition and fulfil increasing consumer expectations. This would boost their long-term profitability.