ELECTRONIC BANKING SYSTEMS AND THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

GBANADOR, Monday A.
Department of Banking and Finance
School of Financial Studies
Captain Elechi Amadi Polytechnic Rumuola, Port Harcourt Rivers State
monday.gbanador@portharcourtpoly.edu.ng
ABSTRACT
This study examined the influence of electronic banking systems (e-banking) on performance of deposit
money banks (DMBs) in Nigeria. The study adopted an ex-post facto research design and utilized secondary
data collected from the Central Bank of Nigeria’s statistical bulletin. Monthly time series data spanning
2019 to 2021 served the study. The Augmented Dickey Fuller (ADF) and Phillips-Perron were used to test
for stationarity. Other econometric tests like Ramsey Reset test, heteroskedasticity test, Breusch-Godfrey
serial correlation LM test, Johansen cointegration test, Parsimonious Error Correction model and the fully
modified Least Square were used for data analysis. The study found that, in the short-run, e-banking systems
had no significant impact on performance of DMBs in Nigeria. However, the result from the long-run
analysis revealed that ATM and POS positively and insignificantly influence performance of DMBs in
Nigeria while Mobile banking has a positive and significant impact on DMBs’ performance. The result from
the Johansen Cointegration and the fully modified least squares shows evidence of long-run relationship
between e-banking and DMBs’ performance. Thus, the study concludes that e-banking influences
performance of DMBs in Nigeria, and recommends that DMBS should sensitize clients regarding the benefit
of using ATM, POS and other e-payment channels; and also offer quality mobile banking services to sustain
their performance.
Keywords: Automated teller machine, bank performance, electronic banking systems, mobile banking,
point of sale, web banking