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Abstract
The study investigated the effect of financial innovations on the profitability of Nigerian banks, with a specific focus on how the adoption of various technological advancements, including mobile banking, digital payments, and blockchain, affects the net interest margin of banks in Nigeria. Using a quantitative research design, the study employed a correlational approach, integrating descriptive and inferential statistics. Descriptive statistics such as mean, median, standard deviation, and variance were used to summarize patterns in the adoption of these technologies and their influence on profitability. Ordinary Least Squares regression analysis was utilized to assess the relationship between financial innovation proxies and the net interest margin. Secondary data were sourced from Central Bank of Nigeria Statistical Bulletin, the Nigerian Stock Exchange, and banks' annual reports. The data captured the significant technological shifts within the Nigerian banking sector, providing insight into the long-term effects of these innovations on profitability. The sample included all 24 commercial banks listed on the Nigerian Stock Exchange, reflecting the industry’s overall engagement with technological advancements. Findings indicated that while some financial innovations, particularly digital payment technologies like Nigerian Inter Bank Settlement System Instant payment, have a positive and significant impact on bank profitability, others, such as mobile and web payment systems, showed insignificant effects due to underutilization and infrastructure challenges. Blockchain technology, particularly Remittance Technology Application also positively impacts profitability, while central pay exhibits no significant effect. Keywords: Financial innovation, Nigeria Banking Industry, Profitability