The Effect of Electronic Banking on Bank Performance in Nigeria

Abstract

This study ascertains the effect of electronic banking on bank performance 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 2008–2017. 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 return on equity (ROE), return on assets (ROA), and earnings per share (EPS) has no significant impact on the performance of banks in Nigeria. With the findings, we can conclude that investment in electronic banking has not improved the performance of deposit money banks in Nigeria. The study recommends that for effectiveness in electronic banking, there should be rigorous campaign and awareness for clients to patronise the facilities.

Keywords: Electronic Banking, Bank Performance, Deposit Money Bank, Nigerian Stock Exchange, CBN, ICT

DOI: 10.7176/EJBM/12-26-09

Publication date:September 30^th 2020