The impact of self-service technologies on the profitability of the banking sector: Evidence from an African country

ABSTRACT: This article seeks to understand how the innovation provided byself-service payment in developing country influence financial performance, using sample banks in Sao Tome and Principe. Central Bank and Commercial Banks annual reports, payment systems reports, service orders, and internal regulations related to the automatic payment system and electronic product sheets wereour data resources as well as information on self-service payment. Return on assets (ROA) and return on equity (ROE)were used to assess financial performance. Regression analyses were used for data processing. We found evidence that the automatic payment system is not statistically significant for the bank profitability decision. Although it translates benefits to the banking system, both in terms of reducing personnel costs, as well as reducing the opening of new branches to meet customer demands.
KEYWORDS: Self-service technologies, banking sector, Africa, Sao Tome &Principe, profitability