E-BANKING AND THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

The study assess e-banking and the performance of Deposit Money Banks in Nigeria. The rapid adoption of electronic banking (e-banking) has reshaped the Nigerian banking industry, creating new opportunities for efficiency, profitability, and customer satisfaction. However, questions remain about the extent to which various e-banking channels mobile banking, internet banking, Automated Teller Machines (ATMs), and Point of Sale (POS) terminals contribute to the financial performance of Deposit Money Banks (DMBs). This study examined the impact of these channels on bank performance in Nigeria. The specific objectives were to determine the effect of each channel on profitability, measured through Return on Assets (ROA), while highlighting operational strengths and weaknesses. An ex-post facto research design was adopted, relying on secondary data from the Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System (NIBSS), and annual reports of selected banks from 2009 to 2017. Ordinary Least Squares (OLS) regression and correlation analysis were employed to test the relationships between e-banking channels and bank performance. Findings from this study revealed that ATMs had a positive and statistically significant effect on bank performance, underscoring their role as the most impactful e-banking channel during the study period. By contrast, mobile banking, internet banking, and POS transactions showed positive correlations with performance but their independent effects were statistically insignificant. The overall model explained 98.9% of the variation in bank performance, indicating strong joint influence of e-banking channels. The study recommends that Nigerian banks sustain ATM innovations while addressing infrastructure, security, and adoption challenges limiting the profitability of mobile, internet, and POS platforms.