Digital Banking Technology and the Operational Efficiency of Banks in Nigeria (original) (raw)
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The role of e-banking on operational efficiency of banks in Nigeria
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Over the last two decades, the Nigerian banking sector has witnessed some upsurge in the use of technology for service delivery. However, concerns have been expressed as to whether cost and other challenges of adopting information technology can be justified by performance. Accordingly, this study sought to examine the relationship between different e-banking channels and the profitability of organisations in Nigeria. Four e-banking channels,(automatic teller machines, point of sales, internet banking transactions and electronic mobile banking) were identified and regressed against return on equity (ROE) of Deposit Money Banks operating in Nigeria between 2006 and 2016. A panel data regression model was formulated and tested using the generalized method of moment approach. The result revealed that the overall impact of electronic banking on profitability of Deposit Money Banks operating in Nigeria was significant and positive. The study recommends that critical stakeholders and beneficiaries of electronic banking – the government, regulatory authorities and the banks should collaborate to put in place an enabling operating environment and an effective regulatory framework to bring about optimal deployment of these services to customers
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The resultant of technological innovation has been the transformation in operational dimension of banks over some decades. Internet technology has brought about a paradigm shift in banking operations to the extent that banks embrace internet technology to enhance effective and extensive delivery of wide range of value added products and services. However, the fact that e-banking is fast gaining acceptance in Nigerian banking sector does not assuredly signify improved bank performance nor would conspicuous use of internet as a delivery channels make it economically viable, productive or profitable. Whether progression is made in the use of internet technology (e-banking) or not, there should be parameter to empirically assess its impact over specified period of adoption. Consequently, the study examined the impact of electronic banking on banks’ performance in Nigeria. Panel data comprised annual audited financial statements of eight banks that have adopted e-) and retained their bra...
The impact of digital banking on the profitability of deposit money banks: Evidence from Ghana
International Journal of Research in Finance and Management, 2020
Digital banking refers to the act of performing banking and financial transaction without the use of physical cash, coins or bills. The fundamental objective of the study was to find out the impact of digital banking on the profitability of deposit money banks in Ghana. Secondary data spanning from 2012 to 2018 were collected from the annual payment system reports of the central bank of Ghana. Cheque codeline clearing, Ghana automated clearing house, Ghana interbank settlements, Gh-Link, and mobile money payments in value were the independent variables. Return on assets (ROA) was the dependent variable employed in the study. Partial least square (PLS) regression was the statistical tool used for the analysis with the aid of Origin2018 scientific software. The results of the study indicated that Gh-Link and E-zwich distinguished themselves from the rest of the variables by explained 95.87% of the variations in the profitability of Ghanaian banks. It was further found that a positive relationship existed between cheque codeline clearing; Ghana automated clearing house, Ghana interbank settlement, GH-Link, and the profitability of Ghanaian Banks. Mobile money and E-zwich, on the other hand, had a negative relationship with the profitability of the banks. It was therefore recommended that the banks should make more efforts in the form of education and marketing to win more customers to patronise the digital banking products for profit maximization. The implication of this study is that policymakers henceforth will have a fair idea when formulating policies concerning Fintech in the future.
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E- banking enable banks to speed up their retail and wholesale banking services; as the banking industry believes that adopting the new technology will help to improve customer service level and tie their customers closer to the bank. An understanding of the implications of electronic banking has therefore become crucial. It is on this basis that this study examined the impact of electronic banking on the performance of money deposit banks in Nigeria from 2006 to 2017 using time series quarterly data. The study adopted Ordinary Least Squares as main tool of analysis. The estimated regression equation showed that in the long-run, all the variables are correctly signed, except inter-bank transfer that is negatively signed. The policy implication of the findings is that e-banking has gradual positive impacts on performance of banks in Nigeria and hence could contribute to the process of economic growth. The research therefore suggests that banks must be focused in terms of their needs ...
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Purpose. This study examined the effect of information and communications technology (ICT) on the efficiency of deposit money banks in Nigeria during the period 2006–2020. Specifically, the effect of volume of transaction on automated teller machine, mobile banking, internet banking and point of sale terminals on the efficiency of deposit money banks was evaluated. Results. The result of Granger Causality test revealed that information and communications technology channels of Automated Teller Machine (ATMs), mobile banking, internet banking, and point of sale (POS) terminals have no significant effect on the efficiency of deposit money banks in Nigeria. Volume of transactions on ATMs, mobile banking, and POS terminal have negative insignificant relationship with efficiency of deposit money banks. On the other hand, volume of transactions on internet banking was negatively and non-significantly linked with efficiency of deposit money banks in Nigeria. The non-significant effect of A...
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This study investigated the profitability performance of Nigerian banks following the full adoption of electronic banking system. The study became necessary as a result of increased penetration of electronic banking which has redefined the banking operations in Nigeria and around the world. Judgmental sampling method was adopted by utilizing data collected from four Nigerian banks. These four banks are the only banks in Nigeria that have consistently retained their brand names and remain quoted in the Nigerian Stock Exchange since 1997. The profitability performance of these banks was measured in terms of returns on equity (ROE) and returns on assets (ROA). With the data collected, we tested the pre- and post-adoption of ebanking performance difference between means using a standard statistical technique for independent sample at 5 percent level of significance for performance factors such as ROE and ROA. The study revealed that the adoption of electronic banking has positively and ...
Impact of E-banking on the Operational Efficiency of Banks in Nigeria
International Journal of Academic Research in Business and Social Sciences, 2019
The research has been conducted on the impact of E-banking on the operational efficiency of Banks in Nigeria, A case of Diamond Bank Plc, Bauchi branch, Nigeria. The objective of the study is to determine the impact of e-banking on the operational efficiency of banks in Nigeria. The research is a quantitative research which used primary sources of data collection. Questionnaires were used to obtained data. 138 questionnaire were distributed among customers of the Bank and the data collected where analysed using regression analysis. It is clear from the findings that, the use of E-banking (Internet and Mobile banking) by the banks has improved the efficiency of these Banks, in terms of providing efficient services to customers electronically, reduces time taken to serve customers, allows new customers to open an account online, customers have easy access to their account at all the time 24/7. Furthermore, E-banking provides access to customer’s information from the data base and cost of cheque and postage was eliminated using E- banking. It is recommendation; the Banks should try to update and improve their internet banking platform, as it has significant positive impact on the operationalefficiency of banks. Also, Biometric ATMs should be introduced to reduce fraud using ATM Cards, as it is use in other countries like USA among others
Electronic Banking Innovations and Selected Banks Performance in Nigeria
The Economics and Finance Letters
In the past few years, Nigerian banks have embraced the global trend of digitalization in banking operations. Thus, after the consolidation and recapitalization exercises, many banks have strengthened and streamlined their facilities, tailored their services as well as automated their operations. In the heat of competition, banks are now adding to the stock of e-banking in order to maintain a competitive edge over their competitors. However, despite the rapid development in electronic banking innovations, it is not clear whether e-banking innovations have impacted positively and significantly on banks' performance in Nigeria. The main objective of this paper therefore is to estimate the impact of e-banking innovations (ATM transactions, mobile banking transactions, and point of sales transactions) on the performance of six selected banks in Nigeria. The study adopts a SURE model in the quantitative analysis of six selected old and new generation banks. The results indicate that automated teller machine transactions, point of sale transactions, mobile banking transactions are major e-banking innovations that contribute to old and new banks' performance in Nigeria. The study therefore concludes that the selected banks and other banks should intensify efforts to increase their asset base and continue to invest in e-banking innovations in order keep preforming well and also remain profitable. The study also calls for efficient management and utilization of funds to train and educate bank workers and general public regularly on how to deploy and use e-banking channels and other related technological innovations respectively. Contribution/Originality: This study is among the first in Nigeria to estimate the impact of e-banking innovations (ATM transactions, mobile banking transactions, and point of sales transactions) on the performance of six selected banks in Nigeria since after the consolidation and recapitalization exercise. Unlike other similar studies, the study adopts a SURE model in the quantitative analysis of six selected old and new generation banks. 1. BACKGROUND AND MOTIVATION Globalization, technological innovations and advanced development in different economies' financial system especially in this 21 st century have really changed the dynamics of financial transactions globally (Johnnson, 2005). According to Oyewole et al. (2013) explosive growth in ICTs have removed the narrowed digital divide and turned business sphere into an electronic world (e-world). Nigerian banks are no exception as banks in Nigeria, especially after the consolidation and recapitalization exercises, have strengthened and streamlined their facilities, tailored their services as well as automated their operations in line with those linked with account Balances, account statement, fixed deposit and check statements. Payment include those associated with credit and debit cards, funds