The Effect of Electronic Banking on the Performance of Deposit Money Banks Listed in Nigeria
Ojianwuna Chukwuekwu
ABSTRACT
Despite the relatively recent arrival of electronic commerce in Nigeria, its popularity is snowballing. Over the years, it has steadily risen, advancing rapidly throughout the spectrum of financial intermediation and markets. Having a high-speed telecommunications network or a computerized information system has undoubtedly allowed banks to deliver new products and services by using new channels. In this study, we aimed to determine whether electronic banking affects the performance of Nigeria’s deposit money banks. We examined the audited financial statements of 10 deposit money banks listed on the Nigerian Stock Exchange in 2011–2020 to extract secondary data. As well as journals, textbooks, and the CBN Bulletin, other public resources were used for the study. The findings revealed that e-banking had a positive and significant effect on the performance of listed Deposit Money Banks in Nigeria, as measured by Automated Teller Machines (ATMs), Point of Sales (POS), Internet Banking (IB), and Mobile Banking (MB), as measured by return on equity (ROE) and return on assets (ROA) (ROA). On the other hand, e-banking does not significantly affect Earnings per Share (EPS). The study recommends that for effectiveness in electronic banking, there should be rigorous campaigns and awareness for clients to patronize e-facilities. Banks should further invest in Information technology given the disruptive trend of emerging financial solutions in Fintech.
