Influence of digital marketing strategies on Performance of microfinance banks in Nigeria

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Abstract

The local banking sector has been up against a plethora of financial industry competitors in the struggle for clients, including microfinance groups and online lending platforms. In addition, as the legal and economic environment has evolved, local banks have been under increasing pressure to expand their capacity in order to remain competitive. Mfis banks now have additional tools to increase their competitiveness as a result of new technology and digital disruption. Despite this, there is a scarcity of study on the nature of the influence of various digital marketing tactics on the competitive advantage of microfinance banks. The study’s purpose was to see how social media marketing, search engine optimization, and e-mail marketing influenced microfinance banks’ performance in Nigeria. The investigation was guided by the technology adoption model and the competitive advantage hypothesis. The study employed a quantitative research approach and a descriptive research design. A total of forty one microfinance banks were included in the study’s target demographic. Commercial bank operations managers, chief technology officers, human resource managers, digital marketing managers, and finance managers were selected as respondents. A total of 136 people took part in the research. A systematic questionnaire was used to obtain the information. The study conducted a pre-test of the research instrument with 10% of the sample respondents. The data was analyzed using descriptive statistics, correlation analysis, and regression analysis. The study’s findings were graphed and analyzed in line with the study’s objectives. The majority of banks, according to the statistics, have employed social media marketing, e-mail marketing, and interactive websites. Social media marketing, search engine optimization, and e-mail marketing all had a positive and significant influence on microfinance institutions’ competitive advantage, according to the correlation findings. Digital marketing tactics were shown to be responsible for 67.2 percent of the variances in bank competitive advantage, according to the regression data. According to the results, commercial banks may obtain a competitive advantage by employing social media marketing, search engine optimization, and e-mail marketing. According to the report, commercial banks should enhance their investment in new technology to help speed the rise of digital-only bank branches and online platforms. According to the survey, commercial banks should also boost their e-mail and social media marketing skills.Microfinance banks will benefit the most from my study since it will give critical information on the effect of specific digital marketing tactics on their institutional competitiveness, which will help them make future choices. Respondents who declined to engage in the study out of fear of their identities being revealed impeded the research as well. This was challenged by submitting a university letter declaring that the research was undertaken only for academic purposes.

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