EFFECT OF INTERNET BANKING ON THE PROFITABILITY OF DEPOSIT MONEY BANKS IN NIGERIA

This study examined the effect of internet banking on the profitability of Deposit Money Banks (DMBs) in Nigeria. The rapid advancement in information and communication technology has transformed banking operations from traditional branch-based services to electronic banking platforms. Internet banking has become one of the major channels through which banks provide financial services to customers, improve operational efficiency, and enhance profitability. The study investigated the relationship between internet banking and the profitability of deposit money banks in Nigeria using secondary data obtained from the Central Bank of Nigeria (CBN), annual reports of selected banks, and relevant publications. Profitability was measured using indicators such as Return on Assets (ROA), Return on Equity (ROE), and Profit After Tax (PAT), while internet banking was measured through the volume and value of online transactions. Findings from previous empirical studies revealed that internet banking has significantly improved service delivery, reduced transaction costs, increased customer convenience, and contributed positively to bank profitability, although some studies reported insignificant effects due to operational and security challenges. The study concludes that internet banking remains a vital tool for enhancing the financial performance of deposit money banks in Nigeria. It therefore recommends continuous investment in digital infrastructure, cybersecurity measures, customer education, and innovative online banking services to maximize profitability and sustain competitive advantage in the banking industry. Keywords: Internet Banking, Profitability, Deposit Money Banks, Electronic Banking, Nigeria, Financial Performance.