1EBHOTE, Jonathan Ehimare MBA, 2 NWANNA, Ifeanyi Onyenwe Ph.D.
1Unizik Business School,Nnamdi Azikiwe University, Awka Nigeria. Phone: +2348037903775
ABSTRACT
In this article, This study examined the effect of digitization on banks profitability in selected commercial banks in Nigeria. The study was precipitated to by the various digital self-service channels by banks for customers’ adoption and other similar works done on the customer service satisfaction of digitization. This work reviewed the digital income earned by four major banks in Nigeria relying on secondary data collected from available information on the banks annual financial result, as presented on the floor of the Nigeria stock exchange, covering a period of 13years from 2006 to 2018. The specific objective of the study is to examine the effect of income earned via the digital channels on the total profit after tax (PAT) of the various banks, and if it has any significant effect on the return on equity. The work adopted the regression analysis model to review and analyzed the effect of digital income to the overall profit after tax of the banks selected out of the 22 commercial banks in the country. The research found out by review of each bank’s analyzed result that in all the banks under review, there was significant effect of digitization on the banks total profit after tax. It however showed that there is no significant effect of digitization on the return on equity of the commercial banks and recommend that banks should ensure their channels uptime is high to increase income.
KEY-WORDSDigitization, Self-Service Channels, Bank Profitability, Technology, Digital Banking
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