IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 2 2024
DOI: https://doi.org/10.56201/jafm.v10.no2.2024.pg47.61

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Effect of Electronic Banking on the Performance of Deposit Money Banks in Nigeria (2005-2022)

Dauda Leviticus Adiga, PhD, Habila Abel Haruna

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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.

keywords:

electronic banking; web transactions; mobile transactions; loans and

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References:

Adeku, S. O. (2021). Technology Innovations in the Nigerian Banking System: Prospects and
challenges. Rajagiri Management Journal. 15(1). 2-15.

Aduaka, U. and Awolusi, O. D. (2020). Electronic Banking and Profitability in the Nigerian
Banking Industry. Information Management and Business Review, 12(1). 20-37.

Adiga, D. L., Adigwe, P. K., Okonkwo, V. I., Ogbonna, S. K. (2022). Effect of Financial
Technology on the Banking Sector Performance in Nigeria. Discovery, 2022 58(316),
349-360.

Amaduche, S., Adesanya, B. M. and Adediji, A. M. (2020). The Impact of Electronic Banking
on the Operations and Performance of Deposit Money Banks in Nigeria. International
Journal of Operational Research in Management, Social Science and Education. 6(1).
ISSN: 2536-6521, e-ISSN: 2536-653X

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