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

Abstract

The study investigates how automated teller machines (ATM) and mobile banking affects performance of deposit money banks in the Nigerian economy. The study made use of time series data which were obtained from the Central Bank of Nigeria Statistical Bulletin from 2009 to 2021. The Central Bank of Nigeria (CBN) data on automated teller machine and mobile phones banking were used to proxy electronic banking while total deposits in banks proxied the performance of deposit money banks. The analysis was done using ordinary least square econometric technique with the aid of E-views statistical package. The results show that the automated teller machine has a positive and significant effect on the performance of deposit money banks and mobile banking has a positive effect on the performance of deposit money banks in Nigeria. It was concluded in the study that e-banking has equally increased banking access to customers and also created room for banks to expand their operations to more customers. The study recommends that banks in Nigeria should prioritize the expansion and maintenance of ATM networks as well as continue to invest in and develop more mobile banking services.