You have no items in your shopping cart.
ABSTRACT
The study evaluated the impact of financial innovation on growth in profitability of Islamic banks in Nigeria, for the period spanning 2008 to 2021, using the data set extracted from the Central Bank of Nigeria (CBN) and the annual statement of islamic banks in Nigeria. The dependent variable was aggregate banking sector return on assets (proxy for islamic banks’ profitability growth) while the explanatory variables include automated teller machine transaction, mobile banking transactions, point of sale transactions, internet banking transactions, electronic fund transfers, and online transactions. Also, the method of analysis adopted in achieving the specific objectives of this study was the Ordinary Least Squares (OLS). The findings of the study included that: ATM transactions has a positive and insignificant relationship with profitability growth of Islamic banks; Mobile banking transactions has a positive and significant relationship with profitability growth of Islamic banks; POS transactions have a positive and significant relationship with profitability growth of Islamic banks; Internet banking transactions has a positive and significant relationship with profitability growth of Islamic banks; Electronic Fund Transfers transactions has a positive and significant relationship with profitability growth of Islamic banks; and Online transactions have a positive and significant relationship with profitability growth of Islamic banks. As a result of these findings, it was recommended that: Islamic banks should prioritize integrating and updating their digital platforms to be user-friendly and secure; banks should focus on expanding their mobile banking features, ensuring they cater to the evolving needs of customers; banks may need to reassess the costs associated with maintaining and upgrading ATM machines against the benefits; it is crucial for banks to invest in top-tier cybersecurity measures to protect their assets and maintain customer trust; and banks should continually enhance these platforms, ensuring they remain efficient, reliable, and offer a variety of functionalities.
