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An assessment of technological capabilities and deposit-mobilisation technologies in selected micro-finance banks in Southwestern Nigeria


Despite the limitations peculiar to Nigerian micro-finance banks in deposit-mobilization initiatives, some banks have managed to deploy technologies to mitigate these constraints. This paper identifies the capabilities responsible for enabling the acquisition and deployment of technologies for deposit mobilization activities with a view to inform policy and management practice. Using data collected from questionnaire administration on the managers of 100 selected micro-finance banks, we identify the technologies deployed; measure investment, operational, marketing and linkage capabilities in the sector using a five-item scale (1 = none and 5 = very high) and examine the technological capabilities that influence the deployment of the technologies. We found out that 28.2% of the banks used Point-of-sale (POS) machines, 10.3% deployed mobile banking technologies, while 33.3% and 20.5% used mobile money and card system technologies respectively for deposit mobilisation activities. The study revealed that technological capabilities in the sector ranged from moderate to high. Our regression model showed that capabilities to penetrate markets, procure and install equipment, negotiate and recruit skilled personnel were 21, 15.24, 5.75 and 0.03 times respectively more likely to influence the deployment of the POS. In addition, ability to link external agents to troubleshoot, test and train staff was 0.08 times more likely to influence the deployment of the POS machine. Capability to assess, procure and install technologies was 0.13 times more likely to influence the deployment of mobile money technologies. The study recommended training through professional bodies and regulatory and knowledge institutions to upgrade technological capabilities in the sector

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Correspondence to Olawale O. Adejuwon.

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Awoyemi, S.O., Adejuwon, O.O. & Ogundari, I.O. An assessment of technological capabilities and deposit-mobilisation technologies in selected micro-finance banks in Southwestern Nigeria. J BANK FINANC TECHNOL 5, 59–69 (2021).

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  • Technological capabilities
  • Deposit-mobilization technologies
  • Micro-finance banks
  • Nigeria