Electronic Banking and Financial Performance of Deposit Money Banks in Nigeria
This study examined the effect of electronic banking on financial performance of deposit money banks in Nigeria. The study employed return on assets as a measure for financial performance while value of transactions of automated teller machine, point of sale, mobile banking and internet banking served as independent variables. The study adopted Ex-post facto research design with quarterly time series data obtained from publications of the NDIC, National Bureau of Statistics and CBN Statistical Bulletin. Autoregressive Distributed Lag (ARDL) method of estimation was employed to determine the effect of the independent variables on financial performance. The findings from the study revealed that value of transactions of mobile banking and internet banking has significant positive effect on the financial performance of DMBs in Nigeria whereas both value of transactions of automated teller machine and point of sale had weak effect on the financial performance of DMBs in Nigeria. The study therefore concludes that electronic banking has the potential to enhance the financial performance of DMBs in Nigeria. It is therefore recommended among others that DMBs should invest more on technological infrastructure as well as enlightenment of customers so as to record more gains from electronic banking. Keywords: Electronic Banking, Automated Teller Machine, Point of Sale, Mobile Banking, Internet Banking, Financial Performance
Keywords: Electronic Banking, Automated Teller Machine, Point of Sale, Mobile Banking, Internet Banking, Financial Performance
Citation: Nwani, O.C., & Aliyu, R.S. (2024). Electronic Banking and Financial Performance of Deposit Money Banks in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 9(3), 59-68.