ELECTRONINC BANKING AND PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA (2011- 2018)

Abstract

Electronic banking has become a central concept in the banking industry due to its ability to increase operational efficiency and enhance financial performance. Nevertheless, the challenges of huge capital expenditure on development, and the increased cost of operation on the maintenance of e-banking facilities to achieve operational efficiency subsist in Nigeria. This paper examined the effects of electronic banking on the aggregate financial performance of Deposit Money Banks in Nigeria for eight years. The focus was on selected electronic banking products - Mobile payments, Automated teller machine (ATM), Internet banking (WEB) and Point of sale (POS) transactions. Secondary data were collected and analyzed quantitatively. Four hypotheses were formulated and tested at a ninety-five percent confidence interval using the Ordinary Least Square (OLS) inferential statistical tool. The results indicated that e-banking in the aggregate has a positive but insignificant effect on the overall performance of Deposit Money Banks (DMBs) in Nigeria.