Digitalisation and firms’ competitiveness in deposit money banks

Abstract

The study examined the effect of digital banking on competitiveness in deposit money banks in Nigeria. The study revealed that there are types of measures of digital banking. These measures are the internal and external digital banking. The measures of competitiveness used in the study are value-added services, quality of service and innovation. The descriptive survey design was employed. The primary source of data was used, and a 7-point Likert scale questionnaire was administered to 312 respondents. Data were analysed using the structural equation model. The results reveal that digital banking affects competitiveness in Nigerian deposit banks. The result further reveals that internal digital banking is the most significant variable in digital banking, while innovation is the most significant variable in measuring competitiveness. The study recommends that deposit money banks invest more in digital banking, especially their internal process, because this will give them a competitive advantage by adding value to customers, increasing quality of services and making them more innovative.   Keywords: Digitalisation, competitiveness, dynamic capabilities, value added, innovation.