Analysis Of the Technical Efficiency of Nigerian Banks Based on Their Ai-Driven Technology

Abstract

This research paper looks into how Ai-based Fintech solutions have improved the operational efficiency of Nigerian banks, using Data Envelopment Analysis (DEA). By applying DEA, the study assesses the technical efficiency of banks that adopted AI-driven technologies between 2019 and 2022, setting a benchmark for how efficiently resources are used. The findings show that banks, using AI solutions, have significantly improved their technical efficiency. This is mainly because of lower operational costs and more efficient customer service processes, even during the COVID-19 pandemic. However, the study also highlights that the efficiency gains vary among banks, depending on factors like the level of AI integration and the competence of management. These insights are valuable for Nigerian banks and their fintech partners, helping them optimize AI deployments to boost operational performance. The paper adds to the broader understanding of AI in financial services, stressing the need for tailored implementation strategies to maximize efficiency benefits.