Effect of electronic banking on financial performance of deposit money banks in Nigeria

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The impact of technology on commerce cannot be denied, especially in relation to trade. This study was conducted to examine the impact of electronic banking on the financial performance of Nigerian deposit money banks. The data for the study was obtained from the Central Bank of Nigeria’s Statistical Bulletin and the National Bureau of Statistics’ Statistical Bulletin for various years, as well as from published financial statements of the banks under study. An ex-post facto research design was used and a normality test was carried out to establish the goodness of the data; descriptive statistics and a multicollinearity test were conducted in which the independent variables were found good. Regression was adopted to test two hypotheses. It was found that ATM has a positive and significant association with Earning EPS and ROA; POS and NEFT significantly affect ROA only, while WEB has an insignificant impact on both EPS and ROA. It is concluded that electronic banking significantly affects financial performance of deposit money banks in Nigeria. Thus, the study recommended that deposit money banks in Nigeria should educate their customers more in the use of NEFT, WEB, and POS, and that the amount of ATM withdrawals should be increased to improve bank performance.

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    • Figure 1. Normality test histogram for EPS
    • Figure 2. Normality test histogram for ROA
    • Table 1. Descriptive statistics
    • Table 2. Normality test
    • Table 3. Multicollinearity test results
    • Table 4. Regression result for Hypothesis 1
    • Table 5. Regression result for Hypothesis 2
    • Conceptualization
      Joseph Madugba, Ben-Caleb Egbide, Uche Toby Agburuga
    • Data curation
      Joseph Madugba, Dike Wozuru Jossy, Uche Toby Agburuga
    • Methodology
      Joseph Madugba, Ben-Caleb Egbide, Dike Wozuru Jossy, Uche Toby Agburuga, Onwubiko Onyebuchi Chibunna
    • Supervision
      Joseph Madugba, Onwubiko Onyebuchi Chibunna
    • Writing – review & editing
      Joseph Madugba, Dike Wozuru Jossy, Uche Toby Agburuga, Onwubiko Onyebuchi Chibunna
    • Formal Analysis
      Ben-Caleb Egbide, Dike Wozuru Jossy, Onwubiko Onyebuchi Chibunna
    • Writing – original draft
      Ben-Caleb Egbide