DETERMINANTS OF PAYMENT INNOVATION AMONG DEPOSIT MONEY BANKS IN NIGERIA: A REVIEW OF LITERATURE

Abstract

Payment innovation plays the central role in enhancing efficiency, accessibility, and financial inclusion within the banking sector, particularly in emerging economies like Nigeria. Through a systematic review of relevant literature, this study synthesises relevant theories and empirical studies to identify gaps in understanding the factors driving payment innovation among DMBs in Nigeria. The review reveals several key determinants influencing payment innovation among DMBs in Nigeria, including bank size, perceived usefulness, regulatory capital, research and development, human capital development, asset quality, leverage, and investment in information and communication technology (ICT). However, the study identified a significant research gap in establishing the directional relationship between these factors and payment innovation outcomes in the Nigerian banking context. Based on the findings, the paper recommends conducting empirical investigations to elucidate the causal relationships between DMBs in Nigeria and the identified determinants of payment innovation. In conclusion, this paper underscores the importance of understanding the determinants driving payment innovation among DMBs in Nigeria. By bridging the research gap through empirical investigations, stakeholders can better navigate the complexities of the banking industry and foster an environment conducive to on-going innovation and growth.