Abstract
Although previous studies have explored the link between digitalisation and bank performance, the impact of these digital tools on deposit money banks in Nigeria remains debatable, especially regarding the components of digital accounting practices. This study examined the effect of digital accounting practices on the financial performance of deposit money banks (DMBs) in Nigeria. Specifically, the study investigated the impacts of data analytics, automated bookkeeping, machine learning, cloud-based accounting systems, and blockchain technology on Nigeria’s return on assets of DMBs. A survey design was employed. A stratified sampling method was adopted to select seven deposit money banks with international authorization. A self-administered questionnaire was used to collect data from a sample size of 396 employees, which was determined using the Taro Yamane formula. The data were analysed using both descriptive and linear regression methods using SPSS. The results of the analysis showed that data analytics, automated bookkeeping, machine learning, cloud-based accounting systems, and blockchain technology have a positive and statistically significant influence on financial performance (ROA). The study concluded that digital accounting practices significantly influenced the economic performance of licensed deposit money banks in Nigeria. The study recommended, among others, that DMBs should enhance their data analytics capabilities to improve financial performance further.