Effect of Electronic Banking on the Performance of Deposit Money Banks in Nigeria (2005-2022)
Abstract
The study examined the effect of electronic banking on the performance of deposit money banks in Nigeria. Although electronic banking has been in existence in Nigeria for some years now, its contributions to the performance of deposit money banks remained debatable. Anchored on the theory of innovation diffusion, this study used secondary data sourced from the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS). Data analysis was done using the OLS regression model to test the relationship between electronic banking aspects of web transactions and mobile transactions, and the performance of deposit money banks measured via loans and advances and private sector deposits. The findings showed that both web and mobile transactions do not affect loans and advances and private sector deposits. Thus, the study concluded that electronic banking failed to influence the performance of deposit money banks in Nigeria. Hence the study recommended among others that the regulatory authorities should adhere to and promote cashless policy as a way of facilitating the increased use of electronic banking components like the web and mobile transactions, which will in turn increase banks’ loans and advances and deposit base.
