IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 4 2025
DOI: 10.56201/jafm.vol.11.no4.2025.pg31.51

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Impact of E-Banking on Bank Performance and Customer Satisfaction in Nigeria: Co-Integration and Error Correction Analytic Approach

Peter Chinyere URUAKPA, Onyemachi Maxwell OGBULU, Veronica Adaku IHEZUKWU

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Abstract

This study examined the impact of e-banking on bank performance and customer satisfaction in the Nigerian banking industry. Knowledge of the relative impact of service quality can propel Deposit Money Banks in Nigeria to focus on the provision of the services that greatly satisfy the banking public. Specifically, the study sought to determine whether there is any significant relationship between ATM, MOB and POS as channels of e-banking respectively and ROA of Deposit Money Banks in Nigeria. Sources of data were both primary and secondary. Secondary data sourced from the CBN Statistical Bulletin and primary data from cross sectional survey instrument distributed to selected bank customers from Imo and Abia States. Data were analyzed using descriptive statistics, regression analysis, Johansen co-integration, error correction model (ECM) and granger causality test. The study finds that ATM negatively but significantly impacts banks performance proxy by ROA; Mobile Banking positively but insignificantly impacts ROA of deposit money banks; and POS negatively but insignificantly relates with ROA of Deposit Money Banks in Nigeria. The study concludes that e-banking has positively impacted the performance of deposit money banks in Nigeria; providing limitless benefits which are catalytic to economic growth. The positive relationship between e-banking and customer satisfaction is evident going by the level of acceptance of e-banking products by the banking public. The study recommends that banks increase their sensitization of customers towards e-banking products acceptance and improve on service quality delivery as well as provide customers with uninterrupted, reliable and efficient e- banking services in order to satisfy and retain the patronage of the customers.

keywords:

E-banking, Customer satisfaction, Service quality, Deposit money banks, Cointegration, Error Correction Model.

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ACKNOWLEDGEMENT: The funding for the research that generated this paper was
provided by TETFUND under Institution Based Research (IBR) Fund intervention.

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