Effects of Electronic Banking on Performance of Deposit Money Banks in Nigeria
- Prof. Akinyomi, O. J.
- Mountain Top University Accounting and Finance 2022
- xiii;'119p.
It is well-known that Deposit Money Banks (DMBs) in Nigeria have embraced electronic banking to keep up with the development in the banking industry and possibly earn competitive advantage. The extent to which these DMBs have benefited from the huge investment in the electronic banking services remains a subject of contemporary research. Therefore, the main objective of this study is to investigate the impact of electronic banking on performance of listed Deposit Money Banks (DMBs) in Nigeria. The study adopted a survey research design involving 15 DMBs branches in Broad Street Lagos which were selected by purposive sampling technique. The study involved administration of copies of a structured questionnaire on 225 staff of the selected listed DMBs from online banking unit, customer care unit and paying counters. . Percentages, means and standard deviations were employed for descriptive statistics. Correlation and multiple regression analyses were explored as inferential statistics. The results of the study revealed that internet banking (beta= 0.174, Sig. 0.004, P<0.05) and Point of Sale (POS) service (beta= 0.769, Sig. 0.000, P<0.05) had positive and significant effect on DMBs’ market share while mobile banking (beta= 0.446, Sig. 0.000, P<0.05) and ATM services (beta= 0.318, Sig.0.000, P<0.05) had strong positive and significant effect on DMBs’ profitability. Further findings revealed that only internet banking (beta= 0.779, Sig. 0.000, P<0.05) had significant positive effect on customers’ satisfaction while ATM services (b ta= 0.417, Sig. 0.000, P<0.05) and internet banking (beta= 0.437, Sig. 0.000, P<0.05) had significant positive effects on competitive advantage of the selected DMBs. The study further revealed that mobile banking (beta= 0.199, Sig. 0.000, P<0.05), ATM services (beta= 0.670, Sig. 000, P<0.05) and internet banking (beta= 0.599, Sig. 0.000, P<0.05) had positive and significant effects on employee’s performance. Consequently, the study concluded that some specific electronic banking services have significant impact on the different measures of DMBs’ performance examined in this study. The study recommended that the management of the listed DMBs in Nigeria should improve on their internet banking and POS services to boost their profitability as well as improving on their ATM and mobile banking services to raise their market shares. This study further recommended that the management of listed DMBs in Nigeria should improve on their ATM, POS and mobile banking services to enhance their customers’ satisfaction. An additional recommendation from this study is that POS and mobile banking services should be given more attention by the listed DMBs in order to aid their competitive advantage. The study recommended further that the management of listed DMBs in Nigeria should motivate their employees to deliver quality POS and mobile banking services to their customers. Keywords: Competitive advantage, customers’ satisfaction, electronic banking, employees’ performance, market share, profitability