Effect of Fintech Evolution on Deposit Mobilisation in Nigerian Deposit Money Banks from 2012 to 2024

Abstract

This study examined the effect of fintech evolution on deposit mobilisation in Nigerian deposit money banks from 2012 to 2024, using ATM, POS, internet banking and mobile banking transaction values as proxies for digital channels. The study adopted an ex post facto longitudinal design and used secondary monthly data from the Central Bank of Nigeria and Nigeria Deposit Insurance Corporation. Descriptive statistics, correlation and regression analyses were applied. Findings revealed strong positive correlations between digital channels and aggregate deposits. However, regression results showed that digital channels jointly explained deposit mobilisation substantially but were not statistically significant at the 5% level. POS and internet banking had positive effects, while ATM and mobile banking had negative effects. For monthly deposit growth, explanatory power was weak, with only ATM showing a significant positive effect. The study concludes that fintech evolution is relevant to deposit mobilisation, but its effect is channel-specific and insufficient to explain short-term deposit growth.