EFFECT OF ELECTRONIC BANKING SYSTEMS ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA
Abstract
This research sets out to examine the relationship between electronic banking and the performance of deposit money banks (DMBs) in Nigeria using ex-post facto research design while adopting, the cointegration error correction model approach. Quarterly time series data of Mobile banking (MB), real-time gross settlement (RTGS), NIBSS Instant Payment (NIP), and Return on Assets (ROA) were obtained from the Central Bank of Nigeria Statistical bulletin during the period 2010Q1-2024Q1. Data obtained were analyzed using both descriptive (mean, standard deviation, and Pearson correlation) and inferential (unit roots, co-integration, error correction model, Jacque-Bera test, and variance inflation factor test) statistical techniques. Findings revealed that electronic banking systems have been found to have a considerable impact on the financial performance of commercial banks in Nigeria. This conclusion has been drawn from the evaluation of these systems. This is because electronic banking automates a lot of processes, which lowers bank operating expenses.