IMPACT OF ELECTRONIC BANKING ON THE PERFORMANCE OF MONEY DEPOSIT BANKS IN NIGERIA

Abstract

E- banking enable banks to speed up their retail and wholesale banking services; as the banking industry believes that adopting the new technology will help to improve customer service level and tie their customers closer to the bank. An understanding of the implications of electronic banking has therefore become crucial. It is on this basis that this study examined the impact of electronic banking on the performance of money deposit banks in Nigeria from 2006 to 2017 using time series quarterly data. The study adopted Ordinary Least Squares as main tool of analysis. The estimated regression equation showed that in the long-run, all the variables are correctly signed, except inter-bank transfer that is negatively signed. The policy implication of the findings is that ebanking has gradual positive impacts on performance of banks in Nigeria and hence could contribute to the process of economic growth. The research therefore suggests that banks must be focused in terms of their needs and using the right technology to achieve goals and objectives, rather, than acquiring technology of internet banking for having sake or because other banks have it and regulatory authorities like Central Bank of Nigeria must enforce fully the new standards and policy on electronic banking transactions.