The impact of bank size on blockchain technology adoption: empirical evidence from Nigerian deposit money banks

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Abstract
Evidence from developed countries has shown that larger banks usually have more financial and technical resources to finance and implement blockchain technology more effectively, compared to smaller banks. Even though interest in blockchain is rising in the Nigerian banking sector, there is little empirical research on how bank size affects blockchain adoption. In view of this gap, this study examines the influence of bank size on the adoption of blockchain technology within Nigerian Deposit Money Banks (DMBs). A longitudinal research design was used, and secondary data were extracted from the published annual reports of the banks from 2015 to 2024. Both descriptive and inferential statistics were used to present the findings of the study. Findings revealed that the size of banks has a positive and significant effect (coeff = 0.124, p = 0.000) on blockchain technology adoption of banks in Nigeria. This demonstrates that larger banks tend to adopt blockchain technology compared to smaller ones. Similarly, return on assets (ROA) has a positive and significant impact (coeff = 0.133, p = 0.0162) on the extent of blockchain adoption of the examined banks. Because ROA was used to proxy the profitability of the banks, this result suggests that an increase in the profitability of banks is an advantage in terms of blockchain adoption. A negative relationship exists between leverage and blockchain technology adoption (−0.0071) as anticipated, but the impact is not significant (p = 0.5731). Lastly, this study found that age has a positive and significant (coeff = 0.0158, p = 0.016) impact on blockchain technology adoption among Nigerian banks, as older banks are investing in this technology more than younger ones. The study concludes that larger banks demonstrate a higher tendency to adopt blockchain technology due to greater resource availability, enhanced technical capacity, and stronger strategic incentives. This study, therefore, concludes that policymakers and industry players should provide supportive policies and programmes to promote blockchain adoption across all bank sizes. Partnerships between smaller banks and fintech firms can help bridge resource gaps, allowing smaller banks to benefit from fintech expertise and innovations without incurring full development costs.

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