Abstract:

Financial innovation is viewed as the act of creating and popularizing new financial instruments, technologies, institutions and markets, which facilitate access to information, trading and means of payment. The paper became necessary as a result of the increased alternative payment systems which has redefined the banking operations in Nigeria and world over. We observed the twenty one (21) Deposit Money Banks licensed by the Central Bank of Nigeria as at 2016 but utilized Sixteen (16) of them purposively selected without bias for representation in terms of progressive innovation. We analyzed the annual reports, accounts, and inter-switch statistical information of the sampled Banks by measuring their performances in terms of returns on equity (ROE). The revealed evidence shows significant relationship between Automated Teller Machines transaction and financial performance while mobile transaction, internet transaction, and point of sales transaction have no significance on the financial performance of deposit money banks in Nigeria in terms of coefficients other than their joint influence even though the factoring of bank size and net interest income bears much on banks’ financial performance. Keywords: Bank Financial Performance, Innovative Products, Market Trading, Returns on Equity, Deposit Money Banks, and Progressive Innovations.

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