Chapter One — 1.1 Background to the Study

In recent years, Mobile Banking Adoption has emerged as a critical factor shaping profitability of deposit money banks across organizations operating in and around Kwara State. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how mobile banking adoption relates to profitability of deposit money banks has become an important area of both scholarly and practical concern.

Kwara State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While mobile banking adoption is widely discussed in policy and industry circles, empirical evidence on its actual effect on profitability of deposit money banks within Kwara State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to mobile banking adoption are helping or hindering profitability of deposit money banks — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Mobile Banking Adoption on profitability of deposit money banks in Kwara State.
2. To assess the extent to which mobile banking adoption influences profitability of deposit money banks within the study area.
3. To identify the challenges associated with mobile banking adoption in relation to profitability of deposit money banks.
4. To recommend strategies for optimizing mobile banking adoption in order to improve profitability of deposit money banks.

1.4 Research Questions

1. What is the effect of mobile banking adoption on profitability of deposit money banks in Kwara State?
2. To what extent does mobile banking adoption influence profitability of deposit money banks within the study area?
3. What challenges are associated with mobile banking adoption in relation to profitability of deposit money banks?
4. What strategies can be adopted to optimize mobile banking adoption in order to improve profitability of deposit money banks?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around profitability of deposit money banks. For managers and practitioners within Kwara State, the study provides practical insight into how mobile banking adoption can be better managed. Finally, it contributes to the academic literature on finance / banking by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Mobile Banking Adoption and its relationship with profitability of deposit money banks within the context of Kwara State. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.