Effect of electronic banking on financial performance of deposit money banks in Nigeria
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Author(s)Joseph MadugbaLink to ORCID Index: https://orcid.org/0000-0001-8929-1905
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Ben-Caleb EgbideLink to ORCID Index: http://orcid.org/0000-0003-2188-2535
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Dike Wozuru Jossy
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Uche Toby Agburuga
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Onwubiko Onyebuchi Chibunna
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DOIhttp://dx.doi.org/10.21511/bbs.16(3).2021.07
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Article InfoVolume 16 2021 , Issue #3, pp. 71-83
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2879 Downloads
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Creative Commons Attribution 4.0 International License
The impact of technology on commerce cannot be denied, especially in relation to trade. This study was conducted to examine the impact of electronic banking on the financial performance of Nigerian deposit money banks. The data for the study was obtained from the Central Bank of Nigeria’s Statistical Bulletin and the National Bureau of Statistics’ Statistical Bulletin for various years, as well as from published financial statements of the banks under study. An ex-post facto research design was used and a normality test was carried out to establish the goodness of the data; descriptive statistics and a multicollinearity test were conducted in which the independent variables were found good. Regression was adopted to test two hypotheses. It was found that ATM has a positive and significant association with Earning EPS and ROA; POS and NEFT significantly affect ROA only, while WEB has an insignificant impact on both EPS and ROA. It is concluded that electronic banking significantly affects financial performance of deposit money banks in Nigeria. Thus, the study recommended that deposit money banks in Nigeria should educate their customers more in the use of NEFT, WEB, and POS, and that the amount of ATM withdrawals should be increased to improve bank performance.
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JEL Classification (Paper profile tab)G20, G21
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References51
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Tables5
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Figures2
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- Figure 1. Normality test histogram for EPS
- Figure 2. Normality test histogram for ROA
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- Table 1. Descriptive statistics
- Table 2. Normality test
- Table 3. Multicollinearity test results
- Table 4. Regression result for Hypothesis 1
- Table 5. Regression result for Hypothesis 2
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