Technological Innovation and Customers' Patronage of Selected Deposit Money Banks in Abeokuta, Ogun State
DOI:
https://doi.org/10.24191/jibe.v10i2.5334Keywords:
Customer and Patronage, Bank, Innovation, TechnologyAbstract
This study examined the effect of technological innovation on customer patronage in selected deposit money banks in Abeokuta, Ogun State, Nigeria. It explored the significant relationship between technological innovation tools such as Automated Teller Machines (ATM), Mobile Banking (MB), E-Transfers (ET), and Point of Sale (POS) systems and customer patronage. To achieve this, the study used simple random sampling to select nine banks: First Bank Plc., United Bank of Africa Plc., Guarantee Trust Bank Plc., Access Bank, First City Monument Bank, Wema Bank, Keystone Bank, Diamond Bank, and Fidelity Bank Plc. A convenience sampling method was used to select 30 customers from each bank, resulting in 270 respondents. The data were analyzed using the Statistical Package for Social Science (SPSS), with Pearson’s correlation coefficient and linear regression analysis employed to test the hypotheses and determine whether a significant relationship existed between technological innovation tools and customer patronage. The findings revealed a positive relationship between technological innovation tools and customer patronage, with three independent variables ATM, Mobile Banking (MB), and E-transfer showing strong positive effects on customer patronage, with coefficients of 0.780, 0.737, and 0.705, respectively. Point of Sale (POS) systems had a moderate effect with a coefficient of 0.524, all at a 1% level of significance. The study concluded that ATM, MB, E-transfer, and POS systems significantly impact customer patronage. Therefore, technological innovations adopted by the selected deposit money banks in Abeokuta would help increase customer patronage. The study recommended that the management of these banks address issues related to customer complaints on POS transaction errors promptly and ensure the efficient operation of ATM, mobile banking, and E-transfer systems to retain and attract more customers, fostering continuous patronage and loyalty
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