Assessment of Bank Technology Machine and Mobile Banking as Market Strategies to Raising Performance of Banks in Nigeria

Anthony O Adaramola,Funso T Kolapo

doi:10.22610/jebs.v11i3(j).2873

Anthony O Adaramola, Funso T Kolapo

Open Access

https://doi.org/10.22610/jebs.v11i3(j).2873

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Abstract

The market challenge in form of increasing competition for success in the banking sector calls for market strategies that are customer- based towards raising the performance of Nigerian banks. The use by banks, of Automated Teller Machines and Mobile banking are at the centre stage of this market strategy. Existing knowledge on this aspect of marketing is inadequate. This study assessed the empirical effects of Automated Teller Machine and Mobile banking as marketing tools on return on equity of banks in Nigeria. Both primary and secondary data were used in the study. The data were fitted to Panel regression models of Fixed and Random effects. Findings support increasing distribution of Teller machines and raising awareness on Mobile banking as result-oriented marketing strategy for banks.

Highlights

The 2004 Nigerian banking sector reforms were aimed at achieving an efficient and sound financial sector
While the use of automated teller machine (ATM) as a bank technology machine has become widely accepted in the Nigerian banking market, the Mobile banking system of delivery is still diffusing as the use of mobile technology in the form of smart phones spread among the Nigerian populace
Descriptive Statistics of the Data: Results in Table 2 show the descriptive statistics of the data to describe the relevance of the ATM and Mobile banking to banks’ marketing efforts

Summary

Introduction

The 2004 Nigerian banking sector reforms were aimed at achieving an efficient and sound financial sector. The launching of the reforms led to a favourable competition in the banking sector. The use of service delivery technology was considered an ideal tool of business diversification to achieve this objective. Up to this period of reforms, banks largely utilized branch network as the major service delivery channel. For example, the automated teller machine (ATM) and mobile banking, gave the banks and the customers a number of service options to run banking business. While the use of ATM as a bank technology machine has become widely accepted in the Nigerian banking market, the Mobile banking system of delivery is still diffusing as the use of mobile technology in the form of smart phones spread among the Nigerian populace. The advent and adoption of sophisticated mobile phones has led to rising demand for mobile banking

Methods

Results

Conclusion