THE ROLE OF MOBILE MONEY SERVICES SUBSCRIBERS IN ENHANCING FINANCIAL PERFORMANCE OF BANKS IN AJEGUNLE TOWN, NIGERIA

Abstract

The study titled Role of Mobile Money Services Subscribers in Enhancing Financial Performance of Banks in Ajegunle Town, Nigeria explored how the number of mobile money subscribers influences the financial performance of banks in Ajegunle, Lagos. Focusing on profitability, transaction volume, and operational efficiency, the study was anchored on the Technology Acceptance Model (TAM), which emphasizes perceived usefulness and ease of use in technology adoption. Using a descriptive cross-sectional design, data were collected from 37 bank personnel (25 managers and 12 operational managers) through structured questionnaires. Analysis in SPSS showed that the number of subscribers significantly and positively affected financial performance (β = 0.109, p = 0.002), with the model explaining 84.6% of performance variability (R² = 0.846; Adjusted R² = 0.769; F = 11.53, p < 0.002). Both bank managers and operational staff recognized the vital role of subscribers in boosting revenue, competitiveness, service delivery, and customer loyalty. The study confirmed that greater mobile banking adoption driven by subscriber perceptions can lead to stronger financial outcomes for banks in low-income, cash-based settings. Theoretical contributions include reinforcing TAM in informal economies. Practically, it advises banks to grow their subscriber base through improved digital literacy, user experience, and outreach. Policy-wise, it supports public-private collaboration to strengthen mobile banking infrastructure and financial inclusion. Future research should focus on engaging active vs. passive users, enhancing digital literacy, and improving customer experience to support sustained adoption and profitability.