Tansian University Journal of Arts, Management & Social Sciences

This study investigated digital transformation and operational efficiency in traditional banking institutions in Anambra State, Nigeria. Specifically, this study determined the effect of blockchain on cost reduction and examined the effect of data security on customer loyalty in traditional banking institutions in Anambra State, Nigeria. Guided by the Fourth Industrial Revolution (4IR) theory and the Technology-Organization Environment (TOE) framework, the study adopted a descriptive survey research design. Data were collected from 353 respondents using a structured questionnaire and analyzed using regression techniques. Findings revealed that blockchain has a significant positive effect on cost reduction (R² = 0.623, p < 0.001), while data security significantly influences customer loyalty (R² = 0.565, p < 0.001). In conclusion, this study provided compelling evidence that digital transformation has a profoundly positive effect on operational efficiency in traditional banking institutions in Anambra State, Nigeria. The study thus recommends that traditional banking institutions in Anambra State, Nigeria, need to adopt blockchain technology to significantly reduce operational costs. To enhance customer loyalty, traditional banking institutions in Anambra State, Nigeria, need to prioritize robust data security measures.

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