Abstract:
Electronic banking means a system through which financial service providers, customers, individuals and businesses are able to access their accounts, do transactions and obtain latest information on financial products and services from public or private networks, such as the internet. This study ascertains the effect of electronic banking on financial performance of selected deposit money banks in Nigeria. The study utilized secondary data derived from the audited annual financial statement of the deposit money banks quoted on the Nigerian Stock Exchange from 2011–2020. An ex-post facto research design was used and a normality test was carried out to establish the goodness of the data; descriptive statistics, OLS and a multi-collinearity test were conducted in which the independent variables were found good. The study also made use of journals, textbooks, Nigerian Stock Exchange fact books, the Central Bank of Nigeria (CBN) Bullions and other published materials. Using the multiple regression analysis techniques, the findings revealed that e-banking measured by internet banking, Automated Teller Machine and Point of Sale has significant impact on Returns on Asset (ROA) of banks in Nigeria. With the findings, we can conclude that investment in electronic banking has improved the 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 ATM, internet banking, and POS to increase bank performance.
