International Council for Education, Research and Training

Exploring the Impact of Innovation practices, Technologies on the Operational Efficiency of Commercial Banks in Nigeria

Otosi, F.Bassey1, Faithpraise, Fina.O2, and Ubi, Ije3

1Business Management, Faculty of Business Management, University of Calabar, Nigeria 2Computer Engineering, Faculty of Engineering and Technology, University of Calabar, Nigeria

3Business Management, Faculty of Business Management, University of Calabar, Nigeria

Abstract

In the rapidly evolving financial landscape, innovation has become a critical driver of operational efficiency for commercial banks. This study explores the impact of technological and process innovations on the operational efficiency of commercial banks in Nigeria. It aims to understand how innovative practices and technologies influence cost reduction, service delivery, customer satisfaction, and overall financial performance. Using a straightforward random sampling technique and a descriptive survey design, the study selected 388 participants at random from the 97,026 commercial bank employees in Calabar Metropolis, Cross River State, who make up the entire population. The research employs a mixed-methods approach, combining quantitative data analysis from financial reports of major Nigerian banks with qualitative insights from interviews with banking professionals. The findings indicate that the adoption of digital banking platforms, automated teller machines (ATMs), mobile banking applications, and advanced data analytics significantly enhance operational efficiency. These innovations reduce transaction costs, minimize human error, and improve service speed and reliability. Furthermore, process innovations such as streamlined loan processing and automated compliance checks contribute to more efficient banking operations. The study highlights the high cost of technology implementation, cybersecurity risks, and the need for continuous staff training as the challenges that may hinder innovation to strive. Despite these challenges, the positive impact of innovation on operational efficiency is evident, suggesting that continued investment in innovative technologies and practices is crucial for the competitive advantage and sustainability of commercial banks in Nigeria. The study further recommends that Nigerian commercial banks prioritize technology adoption and process improvements to enhance their operational capabilities and meet the dynamic needs of their customers.

Keywords: Innovation, Operational Efficiency, Commercial Banks, Nigeria, Digital Banking, Process Innovation, Financial Performance.

Impact Statement

The study, “Exploring the Impact of Innovation Practices and Technologies on the Operational Efficiency of Commercial Banks in Nigeria,” offers critical insights into the transformative role of innovation within the Nigerian banking sector. This research underscores how the adoption of cutting-edge technologies and innovative practices can significantly enhance operational efficiency, reduce costs, and improve service delivery in commercial banks. By analyzing the relationship between technological advancements and operational performance, the study provides empirical evidence that could guide policymakers, banking institutions, and stakeholders in making informed decisions that foster a more resilient and competitive banking environment. The findings of this study are poised to drive strategic initiatives that can lead to increased profitability, customer satisfaction, and overall economic growth in Nigeria.

About Author

Otosi Faithpraise Bassey, a lecturer II in the department of business management in the Faculty of Management Sciences at the at the University of Calabar, is responsible for addressing growing needs in management innovation, strategic human resource management, industrial relations, and related areas. He works closely with students and the public to address requirements industrial needs and creativity in the business world, entrepreneurship, and improvement in the Nigerian business environment, including leadership skills management. He holds a Higher National Diploma (HND) in accounting, a Post Graduate Diploma (PGDM) in Management, a Master of Business Administration (MBA), a Master of Science (M.Sc.) in Business Management, and a Doctor of Philosophy (Ph.D.) in Management with particular interest on innovation in the financial environment in Nigeria from Cross River State University and the University of Calabar, respectively. He has most of his publications in peer-reviewed journals.

References

  1. Abenewe, D; Ogbulu, F. & Ndugbu, A. (2018). Strategic human resource management: Determinants of fit. Research and Practice in Human Resource Management, 14(2), 49-60

  2. Boxall, P., Purcell, J. & Wright, P. (2019). Human resource management: Scope, analysis and significance. Oxford University Press.

  3. Chakraborty, D. & Biswas, W. (2020). Evaluating the impact of human resource planning programs in addressing the strategic goal of the firm. Journal of Advances in Management Research, 4

  4. Chebet, J. (2015). Determinants of employees’ performance in the country government of Kenya; A case of Bungoma country. Published MBA Project, University of Nairobi.

  5. Cherif, F. (2020). The role of human resource management practices and employee job satisfaction in predicting organizational commitment in Saudi Arabia sector. International Journal of Sociology and Social Policy, 40(7/8), 529-554.

  6. Faithpraise, F. O., Otosi, F. B., Enang, A. U., Obisung, E. O., Effiong, E. J., & Inah, E. (2022, April). COVID-19 Vaccination Acceptability Survey among Staff and Students in Nigerian Universities. In 2022 IEEE Nigeria 4th International Conference on Disruptive Technologies for Sustainable Development (NIGERCON) (pp. 1-5). IEEE

  7. Faithpraise, F. O., Otosi, F., Idika, Delight O, Efiong  Eme Joe, Udie, C. A., & Orji, E. I. Advocacy of AI skills acquisition a panacea for youth unemployment in South-South Nigeria. Shodh Sari-An International Multidisciplinary Journal @2023 International Council for Education Research and Training 2023, Vol. 02, Issue 04, 190-206 ISSN: 2959-1376 pp 190-206

  8. Farnham, T.C. (2019). Specialization of environmental scanning activities among upper-level executives. Journal of Management Studies, 18, 299-320.

  9. Hamid Tohidi and Mohammad Mehdi Jabbari / Procedia Technology 1 (2012) 560 – 564

  10. Hassan, R. (2019). Training and development impact on organizational performance: Emperical evidence from oil and gas sector of Pakistan. IOSR Journal of Business and Management, 16(1), 67-72

  11. Hee, O. C. & Jing, K. R. (2018). The influence of human resource management practices on employee performance in the manufacturing sector in Malaysia. International Journal of Human Resource Studies, 8(2), 129-134.

  12. Hult, O. (2004). A comparison of four multi-attribute models in the prediction of consumer attitudes. Journal of Consumer Research, 2(1), 38-52.

  13. Inyang, B. J. (2002). Harmonizing HRM practice in the public and private sector. Human Resource Management, 4, 8-14.

  14. Jaakola, H. (2006). Measuring perceived service quality using SERVQUAL: A case study of the Croatian Hotel Industry. Management, 5(3), 195-209.

  15. Jarra, G. (2022). The impact of high-performance human resource practices on employee attitudes and behaviours. Journal of Management, 39(2), 366-381.

  16. Kisaka, S. E., Sakina, L. S. & Wafubwa, B. M., (2014). X-efficiency of commercial banks in Kenya. Research Journal of Finance and Accounting, 5(14), 1697-2222.

  17. Koch, M. J. (2021). Improving labour productivity: Human resource management do matter: Strategic Management Journal, 17, 335-354.

  18. Lisboa,M., Skarmees, Y. & Lsges, H.  (2011). National character and response to unsatisfactory hotel service. International Journal of Management, 15(3), 229-243.

  19. Magutu, O. P., Mbeche, I. M., Bitange, N. R., Nyaanga, R. O. & Ogoro, O. T. (2021). Quality management practices in Kenyan educational institutions; The case of the University of Nairobi. Africa Journal of Business and Management (AJBUMA), 2(1), 6-11.

  20. Nyaema, W. R. & Wambua, P. (2019). Strategic human resource management practices retention in commercial banks in Nairobi City Country, Kenya. Journal of Human Resource and Leadership, 4(2), 73-89.

  21. Okon, I. E., Ikelegu, M. E., Agorye, A. O., Faithpraise, F. O., & Bassey, O. F. (2021). Ordinal Regression Modelling of Tricycle Modal Comfort in Calabar, Nigeria: Passengers’ Perception. Review of International Geographical Education Online, 11(9).

  22. Omondi, C., Magutu, A., Onsorgo, D. & Abong’o, G. (2019). Specialization of environmental scanning activities among upper level executives. Journal of Management Studies, 18, 299-320.

  23. Orji, L., Olaniyi, D., Oladele, T. & Mhirna, O. (2022). Assessing the quality of conference hotel service product: Towards an empirical based model. The Service Industries Journal, 10(4), 700-721.

  24. Roberts, M. L., Neumann, B. R., & Cauvin, E. (2017). Individual performance measures: effects of experience on preference for financial or non-financial measures. Advances in Management Accounting, 191-221. https://doi.org/10.1108/S1474-787120170000028007

  25. Rogers, D. (2015). The Icarus Paradox: How exceptional companies bring about their own downfall. Harper Business

  26. Urlich, D. (2019). The HR value proportion. New York: Harvard Business Press

  27. Njoku, N. C. (2023). A multimodal discourse analysis of five selected online bank advertisements. Shodh Sari-An International Multidisciplinary Journal, 02(03), 294–312. https://doi.org/10.59231/sari7606

Back

Contact​

Visit our main website www.icert.org.in

Copyright © 2024  International Council for Education, Research and Training  – All Rights Reserved.

Scroll to Top