Effect of Digital Banking Transformation on Financial Reporting Quality in Nigerian Commercial Banks

The rapid digitalization of banking operations in Nigeria has introduced new complexities in financial data management, transaction recording, and regulatory compliance, raising questions about the downstream effects on financial reporting quality. This study examined the effect of digital banking transformation on financial reporting quality in selected commercial banks in Nigeria, with particular emphasis on banks with operational headquarters in Anambra State. The study was anchored on the technology acceptance model, which explains user adoption of new technologies based on perceived usefulness and ease of use. A descriptive survey design was adopted, with a population of 318 accounting officers, information technology auditors, and financial controllers drawn from five selected banks. Using the Taro Yamane formula, a sample of 178 respondents was determined and selected via stratified random sampling. Structured questionnaires were administered, and data were analyzed using multiple regression analysis. Findings indicated that digital banking adoption positively and significantly enhanced timeliness, accuracy, and consistency of financial reporting outputs. However, increased cybersecurity risks were found to moderately undermine the completeness dimension of reporting quality. The study concluded that while digital transformation broadly improves reporting quality, banks must invest in robust cybersecurity frameworks to address emerging vulnerabilities. It was recommended that the Central Bank of Nigeria should issue updated guidelines integrating digital risk management into existing financial reporting frameworks.

Keywords: Digital banking, financial reporting quality, technology acceptance model, cybersecurity, commercial banks