TECHNOLOGICAL BUSINESS TRANSFORMATION AND PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA
Abstract
The proliferation and rapid advances in technology-based systems, especially those related to the internet are leading fundamental changes in how banks interact with customers. The study examined the effect of business transformation on performance of commercial Banks in Nigeria. The study employed both primary and secondary data in achieving its objectives. The sample size of 281which was determined using Taro Yamane’s formula. The study found mean effect of business transformation indicators of commercial bank in South East Nigeria (Mean: 2.86) which was accepted. Result on effect of business transformation on liquidity and efficiency of commercial banks in Nigeria shows a mean of 2.69 that was accepted. Result on effect of business transformation on the levels of profits of commercial banks in Nigeria shows a mean was 2.97 that was accepted. Furthermore, result on effect of business transformation on patronage of banking services in Nigeria shows a clustered mean of 2.93 that was accepted. This implies that business transformation has mean effect on patronage of banking services of commercial banks in Nigeria. Furthermore, the hypothesis one tested shows that there is a significant difference between the levels of business transformation indicators of commercial banks in Nigeria (p < 0.05). For hypothesis two, business transformation has significant effect on liquidity and efficiency of commercial banks in Nigeria (p < 0.05). Hypothesis three shows that business transformation has significant effect on the levels of profits of commercial banks in Nigeria (p< 0.05). Also business transformation has significant effect on patronage of banking services in Nigeria (t-table value of 1.96 at p< 0.05). The study therefore, recommended that banks should continue to adopt internet and mobile banking since it has tremendous effect on their operational performance. The bank is advised to organize training on internet banking and mobile from time to time for the benefit of customers, this will go a long way to enhance the benefits derived by the bank from internet banking services.
