Digitalization as vehicle for Financial Institutions' Growth and Effectiveness

This paper investigates empirically digitalization as a vehicle for innovation that brings about growth and effectiveness to deposit money banks in Nigeria. The data utilized for the study were sourced from Statistical Bulletin of Central Bank of Nigeria spanning from the period of 2010-2018. A documentary and econometrics technique were used for the study. Various analysis/test were conducted ranging from graphical regression analysis, test of stationarity, long-run relationship test, granger causality test to residual diagnostic tests. From the interpretation of empirical result of the study, it was discovered that digitalization has negative and significant influence on the growth and effectiveness of deposit money banks in Nigeria. Based on the findings of the study, it is recommended, among others, that Education and sensitization of customers on how to use the various mobile apps and other applications for transactions should be carried out and intensified by Deposit Money Banks (DMBs) and Central Bank of Nigeria (CBN) in other to reduce congestion in banking halls. DMBs and CBN should reduce transaction cost on automated teller machine (ATM), point-of-sale (POS) and mobile transfers, etc. in other to retain existing customers and encourage prospective ones without jeopardizing profitability, as more customers would be attracted to the bank because of digitalization innovation