EFFECT OF E-BANKING ON COMMERCIAL BANKS PERFORMANCE IN NIGERIA

ABSTRACT This study investigates impact of e-banking on bank performance in Nigeria, while Zenith Bank was sighted as the case study. Hypothesis formulated are tested for the study in order to determine the relationship between variable E-banking (ATM), Mobile App users (MApp) the independent variable return on asset (ROA), Return on equity (ROE). Electronic banking was measured using the total value of internet and mobile banking while growth was measured using the value of total deposits and total assets of deposit money banks in Nigeria. A total deposit was regressed on internet and mobile banking, while a total asset was regressed on internet and mobile banking using multiple regression technique. The study revealed that positive relationships exist between mobile banking and total deposits, and between internet banking and total asset while on the other hand, no significant relationships between internet banking and total deposits, and between mobile banking and total asset. It is therefore recommended that banks that want to improve their deposit growth performance must offer numerous products/services through mobile phones in an effective, efficient and cost effective manner. They must also make mobile banking application all mobile phones enabled so that those customers who cannot afford Java enabled mobile phones can also use the product. The study also recommends that banks that want to increase their asset holdings must offer numerous, efficient and cost effective secured transactions through the internet