INTEGRATED FINANCIAL ACCOUNTING SYSTEMS AND OPERATION PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The current investigation has examined the perceived impact of integrated financial accounting systems on operational efficacy, management of the general ledger, automation of reconciliation processes, and adherence to regulatory obligations within the Deposit Money Banks of Nigeria. The research employed a descriptive survey methodology to gather primary data; self-administered questionnaires were distributed to 105 senior personnel from finance, accounting, auditing, operational roles, and IT professionals who were randomly selected from 15 Deposit Money Banks (DMBs) across Nigeria. Hypothesis testing was conducted utilizing Covariance-Based Structural Equation Modeling (CB-SEM), the findings of which demonstrate that general ledger management exerts a significant effect on operational performance, with a parameter estimate of 1.060 and a p-value of 0.001. Furthermore, automation of reconciliation management was also determined to significantly affect operational performance, with a parameter estimate of 0.606 and a p-value of 0.006. The analysis revealed that the regulatory compliance modules positively influence operational performance, with the parameter estimate being 0.669 and a significant p-value of 0.004. There was a significant relationship between them, proving that they all acted together to affect operational efficiency. Based on these conclusions, optimization of these systems will yield improvement in efficiency, compliance, and other aspects of performance. It suggested that DMBs invest in further development of these modules and invest in staff training to fully realize their benefits.