Research purpose: The paper empirically studied the effect of information technology (IT) on performance of DMBs in Nigeria. Specifically, it ascertained the effect of electronic payment platforms such as automated teller machine transaction, point of sales payment system, web payment and mobile payment system on profit for the year of deposit money banks in Nigeria.
Methodology: It adopted an ex-post-facto research design, covering a period of 14 years (2009 – 2022). Data collated from World Bank Database, CBN Statistical Bulletin and audited annual reports of the sampled banks were diagnosed and analyzed using relevant statistical tools including panel least squares, stationarity and cointegration tests.
Findings: Findings indicated that although the cumulative impact of the regressors on the dependent variable is significant (t-statistic = Wald chi2 =14.46; p-value = p > |z| =0.0249 < 0.05), individual effect ( is nonsignificant except for automatic teller machine (p-value = 0.002, t-statistic = -3.06), natural logarithm of total assets (p-value = 0.027, t-statistic = 2.20) and natural logarithm of total e-payment (p-value = 0.017, t-statistic = -2.38) that exerted very strong effects on the same regressand. In other words, the influence of the control variables is statistically relevant.
Conclusion and Recommendation: It means that use of information technology in DMBs should be encouraged.
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