Asian Journal of Economics, Business and Accounting

This study examines the impact of Financial Technology (FinTech) on the financial performance of deposit money banks in Nigeria. A survey research design was used to collect data from 150 respondents randomly selected across six banking institutions operating in Nigeria, chosen using a homogeneous purposive sampling technique, with each bank providing a sample of 25 questionnaires. Out of the 150 questionnaires distributed, 132 were retrieved and found useful, representing 88% of the total questionnaires administered. The collected data were summarized and analyzed using descriptive statistics, such as tables, frequency, and percentage analysis, while multiple regression analysis was employed to test the hypotheses. The findings reveal a significant positive relationship between digital banking adoption and banks' Return on Assets (ROA), with a coefficient of determination (R²) of 0.743, indicating that 74% of the variation in bank performance is explained by the adoption of digital banking. The study shows that digital banking practices, including ATM transaction volume and internet banking usage, significantly overall profitability of the sampled banks. the study concluded that components of financial technology, such as digital banking penetration, ATM transaction volume, and internet banking usage, are key drivers of banking performance and significantly enhance profitability in Nigeria's deposit money banks. The study recommends that banks invest in advanced digital infrastructure, enhance ATM service reliability, and prioritize cybersecurity measures. These steps will not only increase long-term profitability but also foster greater customer trust in the digital banking space.