Effect of Information and Communication Technology (ICT) Investments on Profitability of Listed Deposit Money Banks in Sub-Saharan Africa

This study examined the effect of ICT investments on the profitability of listed deposit money banks in Sub-Saharan Africa. A quantitative research design was employed. Data were drawn from the annual reports and financial statements of listed deposit money banks in the region. The study used purposive sampling to select 58 listed deposit money banks that met the criteria of having complete and reliable data. Secondary data were collected from reputable sources. Descriptive statistics, correlation analysis, and multiple regression were used as techniques for data analysis, supported by diagnostic procedures to ensure the robustness and validity of the findings. The results revealed that ICT assets had no statistically significant effect on profitability of listed deposit money banks in Sub-Saharan Africa. While ICT expenditure had a positive and significant effect on profitability of listed deposit money banks in Sub-Saharan Africa. The study concluded that ICT assets alone did not influence profitability of listed deposit money banks in Sub-Saharan Africa, whereas increased ICT expenditure was beneficial to the profitability of listed deposit money banks in Sub-Saharan Africa. The study recommended that deposit money banks in Sub-Saharan Africa should prioritize spending on ICT initiatives that directly enhance operational efficiency and service delivery, such as digital platforms, cybersecurity, and data management systems, as these have a proven positive effect on profitability. Additionally, banks should optimize the use of existing ICT infrastructure through better integration into core operations, regular system updates, and staff training.