IMPACT OF DIGITAL TRANSFORMATION ON FINANCIAL REPORTING ACCURACY OF DEPOSIT MONEY BANKS IN BENIN CITY NIGERIA.
This study examined the impact of digital transformation on financial reporting accuracy of deposit money banks operating in Benin City, Edo State, Nigeria. Specifically, the study investigated the effect of the use of data analytics and business intelligence tools, cloud computing system adoption, digital skills and IT competence of staff, and automation of the financial reporting process on financial reporting accuracy. The study adopted a survey research design and utilized primary data obtained through structured questionnaires administered to operations, finance, internal audit, and information technology staff of deposit money banks. Data were analyzed using descriptive statistics and multiple regression analysis. The findings revealed that digital transformation has a significant positive impact on financial reporting accuracy of deposit money banks. The use of data analytics and business intelligence tools was found to significantly enhance error detection and reconciliation processes, thereby improving reporting accuracy. Cloud computing system adoption significantly improved data centralization and consistency, resulting in more accurate financial reports. Digital skills and IT competence of staff emerged as the most influential factor, underscoring the importance of human capital in achieving effective digital transformation. Automation of the financial reporting process also significantly reduced manual errors and strengthened internal controls over financial reporting. The study concluded that digital transformation is a critical driver of financial reporting accuracy in the banking sector, particularly when supported by skilled personnel and strong governance structures. Based on the findings, the study recommended increased investment in digital technologies, continuous training of staff, strengthened data governance frameworks, and enhanced regulatory support for digital financial reporting practices.
KeyWords: Digital Transformation, Digital Skils, Cloud Computing, Data Analytics, Financial Reporting Accuracy.
