The role of e-banking on operational efficiency of banks in Nigeria (original) (raw)
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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
Impact of Electronic Banking on Bank Performance in Ekiti State, Nigeria
International journal of multidisciplinary and current research, 2016
This study investigated the impact of electronic banking on bank performance. 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. Considering the fact that the population is not too large, the study adopted census sampling technique were adopted by utilizing data collected from one hundred and twenty eight (128) top bank management in Ekiti State who were at the supervisory level of bank branches in Ado-Ekiti metropolis (bank managers, operational managers, customer officers and marketing managers). Method of data analyses used was multiple regressions to achieve the stated objectives. The findings showed that R 2 captured 0.560 of the relationship between Automated teller machine, internet banking and mobile banking on bank performance in Ekiti State. The study recommended that the Nigerian Bank customers should adopt electronic banking (ATM, internet and mobile banking) fo...
E-banking and Bank Performance: Evidence from Nigeria
2013
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...
Electronic Banking And Bank Performance In Nigeria
2013
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 ...
2020
This research study seeks to measure the impact of e-banking on commercial banking operations. With our case study being UBA Bank Cameroon, we will set out to examine the relationship between e-banking services and the profitability of the banking institution and also to identify the difference between those who use E-banking Services and Counter Service. We will use the T-test model and a simple correlation model to establish a relationship between e-banking services and the profitability of the banking institution whilst also establishing the difference between customers who use e-banking services and customers who use the counter service. In conducting this research, we will use both primary and secondary data. Furthermore, quantitative and descriptive methods of analysis will be adopted to examine the impact of e-banking services on the profitability of the banking institution.
Digital Banking Technology and the Operational Efficiency of Banks in Nigeria
This paper explores the impact of digital banking technology adoption on the operational efficiency of commercial banking firms in Nigeria. It synthesizes existing literature to establish theoretical frameworks, including Technological Adoption and Operational Efficiency Theory, Customer Experience and Efficiency Enhancement Theory, and Regulatory Compliance and Risk Management Theory. Empirical evidence is provided through quasi-experimental research design utilizing financial time series analysis. Findings indicate a significant and positive relationship between the adoption of digital banking technology and the efficiency of commercial banking firms. Panel unit root tests confirm non-stationarity at the level values of all variables, with stationarity achieved through differencing. Cointegration tests reveal a long-run equilibrium relationship between digital banking technology adoption and banking efficiency. Pairwise Granger causality tests suggest uni-directional causality from electronic fund transfer to operational efficiency. The study concludes that policymakers and stakeholders should prioritize strategies promoting digital banking technology adoption to enhance the efficiency and performance of commercial banking firms in Nigeria.
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
The Effect of Adoption of Internet Banking on Performance in the Banking Industry in Nigeria
This study examined the effect of adoption of internet banking on performance in the banking industry in Nigeria following the adoption of internet banking in the country which has redefined the way banking transactions are being carried out. Convenience sampling method was adopted, making use of both primary and secondary data. Copies of a questionnaire was distributed among a sample of 156 respondents from six banks out of the population of 22 banks. Descriptive (mean, median, standard deviation and variance) and inferential statistics (ANOVA) were used for the data analysis with the aid of Statistical Packages for Social Sciences (SPSS) version 20. It was observed that the adoption of internet banking does not significantly affect the performance of Nigeria banks as cost of operation has not reduced, profitability has not increased compared to liabilities, level of fraud has been on the increase and influx of customers to the banking hall have also not reduced.
The Impact of Electronic Business on Performance (A case study of a Nigeria bank)
Electronic business has been widely adopted in different parts of the world. In Nigeria, the initial adoption of electronic business in Nigerian banks was in 1990. The aim of this research was to identify if there was a significant impact of e-business services and products on the performance of banks in Nigeria. Several research have been conducted on e-business and performance but in different contexts. This research is particularly of benefit to the bank understudied and the industry with which the bank operates. It is also essential to the academic field since e-business has not been researched based on its impact on banks’ performance in Nigeria. Performance of banks for the purpose of this research is based on employee efficiency and profitability. A quantitative research design was adopted to answer the research question and achieve the research objectives. A branch of a bank was understudied and the respondents constituted all employees in the branch who are directly and indirectly involved in e-business products and services of the bank. A questionnaire was designed to achieve the purpose of the research and administered to respondents via Bristol online survey. The data collected were imported on Statistical Package for the Social Sciences (SPSS) and analysed with ANOVA. From the results, electronic business had a significant impact on employee efficiency and profitability of the bank understudied. Electronic banking influences banking management, provides better channels to market bank’s products and services and contributes to effective cost management system. Electronic banking from the results had the strongest impact on the internal users (employees). With the positive results from the study, banks in Nigeria that are yet to adopt e-business products and services are encouraged to do so since its adoption has helped in increasing the profit margin of banks and the efficiency of employees. Although there was a significant impact on employee efficiency and profitability, the results were limited to one branch of a bank. The results may not be the same with a wider population. Further research may be conducted on the impact of electronic business on the performance of Nigerian banks by understudying more than one bank.