RE-ENGINEERING BANKING SERVICES AND ECONOMIC DEVELOPMENT IN NIGERIA 2005 - 2024

Abstract

This study examined the relationship between Banking Service Re-engineering and Economic Development in Nigeria. This study adopted the quantitative explanatory research design, Ten deposit money banks were selected out of all the banks listed in the Nigeria Exchange Group. Secondary data were obtained from various issues of reputable institutional sources like the Central Bank of Nigeria (CBN) Statistical Bulletins, National Bureau of Statistics (NBS), and World Bank World Development Indicators (WDI) specifically from the financial statements of the ten selected banks purposefully sampled for this study. Human Development Index (HDI) was used as proxy for economic development which is the dependent variable while Volume of Digital Transactions, (VDT), Cost to Income Ratio (CIR), Financial Inclusion (FIN) and Inflation (INF) were used as the indices for Bank service re-engineering as the independent variables. Panel data ordinary least square was used to estimate the relationship between the variables and the study found that all the explanatory variables exerted positive and significant impact on the dependent variable except inflation. Based on the findings in this study it was concluded that efficient banking services with digital resources is a profound predictor of economic development in Nigeria. The study recommended that bank policy makers should encourage digital transformation in banking services, support financial inclusion initiatives and develop policies that will promote entrepreneurship and innovation and reduce inflation to a stable minimum.