Digital Finance and the Future of Nigerian Banking System: A Review

Babarinde, Gbenga Festus; Gidigbi, Matthew Oladapo; Ndaghu, Julius T.; Abdulmajeed, Idera

doi:10.20321/nilejbe.v6i16.02

Cited by 9 publications

(6 citation statements)

References 5 publications

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“…Financial inclusion is operationalized based on three dimensions: accessibility, affordability and availability, with their respective measures as commercial bank branches (per 100,000 adults) (that is bank penetration); borrowers from commercial banks (per 1,000 adults) (that is credit penetration); and depositors with commercial banks (per 1,000 adults) (that is deposit penetration). The operationalization of the variables of study are in line with previous studies like Ogbeide and Igbinigie (2019), Lakshmanasamy (2020), andBabarinde et al (2021).…”

Section: Description Of the Variables Of Study Description Of The Var...supporting

confidence: 76%

“…Financial inclusion is the degree to which people, most especially the rural populace, the poor, the illiterate and those financially excluded from the formal financial services, have access to, make use and afford to enjoy financial services to enjoy the basic social facilities (Babarinde, Ndaghu, Abdulmajeed & Enoruwa, 2021). Ogbeide and Igbinigie (2019) also describe financial inclusion as the provision of contact to and usage of different and affordable fi-finanCial inClusion imPliCations on thE liquidity… 13 13 nancial services.…”

Section: Conceptual Literature Conceptual Literaturementioning

confidence: 99%

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Financial Inclusion Implications on the Liquidity of the Nigerian Capital Market

Babarinde

Daneji

Jalloh³

et al. 2023

CJFA

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The objective of this study was to examine the implications of financial inclusion on capital market liquidity in Nigeria. Therefore, we applied Vector Autoregression (VAR) technique to the analysis of the quarterly time series data obtained from Central Bank of Nigeria’s statistical bulletin and World Development Indicators for the period, 2008Q1 to 2018Q4. Findings of this study reveal that deposit penetration, bank penetration and credit penetration have positive but non-significant impact on stock market turnover ratio in Nigeria. Furthermore, unlike deposit penetration which exerts negative and non-significant influence on the value of shares traded ratio; bank penetration and credit penetration have positive but non-significant impact on the value of shares traded ratio in Nigeria. The study posits that financial inclusion exerts no significant influence/implications on stock market liquidity in Nigeria with a very negligible variation in the latter (stock market liquidity) explained by the former (financial inclusion). It is therefore recommended that accounts and bank penetrations should be re-engineered towards their translations to high volume and value of capital market transactions rather than mere financial penetration without any capital market implications in Nigeria.

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Section: Description Of the Variables Of Study Description Of The Var...supporting

confidence: 76%

Section: Conceptual Literature Conceptual Literaturementioning

confidence: 99%

Financial Inclusion Implications on the Liquidity of the Nigerian Capital Market

Babarinde

Daneji

Jalloh³

et al. 2023

CJFA

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“…As Babarinde et al (2020) [38] suggests, it is vital that the banking industry keeps pace with the digital innovations. In Turkey, the banking sector started supporting and promoting fintech through establishing their own technology subsidiaries and exploring new financial technologies.…”

Section: Conclusion Discussion and Recommendationsmentioning

confidence: 99%

Can Fintech Promote Sustainable Finance? Policy Lessons from the Case of Turkey

2022

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This study contributes to sustainable finance literature by exemplifying promotion of sustainable finance through fintech solutions for emerging market economies by presenting the case of Turkey. Turkey is one of the largest emerging market economies in the world with a strong banking system and high adoption of technology, so it has great potential to benefit from fintech solutions to boost sustainable finance. For the case analysis, the data used came from a research platform for a Turkish start-up ecosystem, Turkish regulations, and documents released on Turkey’s sustainable finance strategies by Turkish and international institutions. We found that Turkey has made remarkable progress in increasing financial inclusivity for underbanked individuals and SMEs via providing contactless payment and contract systems and microfinance by mobile carriers and other online platforms. Turkey was also able to promote the responsible consumption goal for sustainable development by improving fintech solutions on payment systems with educational content on this goal. With upcoming developments such as the sandbox environment in Istanbul Financial Center, fintech solutions using Big Data, AI, and blockchain could emerge much faster with collaboration between banking and fintech sectors and regulatory institutions to better assess climate-related financial risks and form a national carbon trading mechanism.

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“…The Financial Services Authority (OJK,2019) conducts an assessment with the Regulatory Sandbox to assess the business processes, business models, financial instruments, and governance of those who carry out digital financial innovations whether they are running well or not. Digital finance can also be interpreted as a type of financial service that uses digital products such as personal computers, the internet, smartphones, or cards that can be connected to digital payment systems (Babarinde et. al, 2020).…”

Section: Digital Financementioning

confidence: 99%

The Effect of Digital Financial, Credit Risk, Overhead Cost, and Non-Interest Income on Bank Stability

Idawati,

Syafputri

2022

INQUISITIVE

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This research aims to find out and analyze the influence of digital finance, credit risk, overhead cost, and non-interest income on the stability of banks from the banking industry included in conventional banks listed on the Indonesia Stock Exchange (IDX) in the period 2016 to 2020. Sample selection uses the purposive sampling method. The number of samples used in this study amounted to 40 Conventional Banks registered IDX. The independent variable consists of Digital Finance measured using dummy variables, namely 1 if the bank launches a mobile banking application and 0 if vice versa, Credit Risk measured using Non Performing Loan (NPL), Overhead Cost measured using overhead expense ratio divided by total assets, and Non-Interest Income as measured by non-interest income ratio divided by total operating income. Furthermore, the study's dependent variable is Bank Stability as measured using Z-scores. This study compares two research results based on the COVID-19 Pandemic period, namely research I before COVID-19 with 2016 to 2019 and research II when COVID19 with only 2020. The results showed that Digital Finance had a positive effect on both studies, Credit Risk had a negative effect on both studies, Overhead Cost had no effect, and Non-Interest Income had no effect on the study period I and negatively on the study period II. Keywords: Digital Finance, Mobile Banking, Credit Risk, NPL, Overhead Cost, Non-Interest Income

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Digital Finance and the Future of Nigerian Banking System: A Review

Cited by 9 publications

References 5 publications

Financial Inclusion Implications on the Liquidity of the Nigerian Capital Market

Financial Inclusion Implications on the Liquidity of the Nigerian Capital Market

Can Fintech Promote Sustainable Finance? Policy Lessons from the Case of Turkey

The Effect of Digital Financial, Credit Risk, Overhead Cost, and Non-Interest Income on Bank Stability

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