ELECTRONIC BANKING SYSTEMS AND BANK PERFORMANCE IN NIGERIA

ABSTRACT

This study examines the impact of electronic banking system on the performance of banks in Nigeria for the period of 13 years (20210 – 2022). The objectives were to examine the relationship between automated teller machine (ATM) transactions and the performance of Banks in Nigeria, to examine the relationship between point of sales (POS) transactions and the performance of Banks in Nigeria, to examine the relationship between mobile banking transactions and the performance of Banks in Nigeria, to examine the relationship between Unstructured Supplementary Service Data (USSD) and the performance of Banks in Nigeria, and to evaluate the impact of electronic funds transfer on the performance of Deposit Money Banks in Nigeria. The study employed the ex-post facto research design, utilizing the OLS regression technique to analyse quarterly data for the variables. The findings revealed that automated teller machine transaction has a positive significant impact on commercial bank performance in Nigeria, that mobile payment has a positive significant impact on commercial bank performance in Nigeria, that point of sales transaction has a negative insignificant impact on commercial bank performance in Nigeria, that USSD payment transaction has a positive significant impact on commercial bank performance in Nigeria, and that electronic funds transfer has a positive insignificant impact on commercial bank performance in Nigeria. The study therefore concludes that electronic banking systems has significant effects on the performance of Banks in Nigeria, and recommends, among others, that deposit money banks should take an advantage of ICT to equip their bank branches and outlets with functional automated teller machines to enhance their financial performance.