THE IMPACT OF ELECTRONIC BANKING ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA.

Abstract

This study examined the impact of electronic banking on the performance of Deposit Money Banks in Nigeria. The objective sought to ascertain whether the various electronic banking products introduced by the banks in the face of keen competition have significantly impacted on Deposit Money Banks performances. The hypothesis was tested and answered the study question at 0.05 level of significance. Ex-post research design was adopted for the study. The population of the study was the entire twenty-four (24) Deposit Money Banks in Nigeria out of which thirteen (13) were purposively sampled that existed before and after the introduction of electronic banking and have not change names. Secondary data were utilized and sourced from Central Bank of Nigeria (CBN) annual reports and financial records of Deposit Money Banks in Nigeria. Multiple Regression Model was used as a tool for the analysis of the data collected. The results from test of the hypothesis revealed that, ATM, MB, EFT, POS and TB have significant positive impact on ROS. The study therefore, recommended that there is need for Deposit Money Banks to heavily invest in technology as this will highly encourage the adoption of electronic banking products and this will influence the performance of Deposit Money Banks in Nigeria. Banks management should strive to innovate better and cheaper ways of servicing customers. With shorter transaction turnaround time, transactions volumes can be significantly increased.