AN EVALUATION OF E-BANKING SYSTEM AND THE PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA

ABSTRACT This study is on the impact of electronic banking on the profitability of commercial banks in Nigeria. The study sought to examine the relationship between different e-banking channels and the profitability of commercial banks in Nigeria. Four e-banking channels (automatic teller machines, electronic mobile banking, internet banking transactions, and point of sales services) were identified and regress against the profit before tax of commercial banks operating in Nigeria between 2016 to 2024. The study used the confirmed ECM model (via residual diagnosis) to test the formulated hypotheses. The results revealed that the over impact of electronic banking on the profitability of commercial banks was significant; whereas, the impact of the individual channels was varied. The study recommends, amongst others that, commercial banks should intensify effort to deploy more ATM delivery points and also make them more effective and efficient and that the regulatory authorities should also collaborate with the banks to put in place an enabling operating environment and regulatory framework to bring out optimal deployment of these services to customers. This is especially with respect to addressing the issue of failed transactions.