







































American Interdisciplinary Journal of Business and Economics  

ISSN: 2837-1909| Impact Factor: 6.72 

Volume. 10, Number 2; April-June, 2023;  

Published By: Scientific and Academic Development Institute (SADI)   

8933 Willis Ave Los Angeles, California  

https://sadipub.com/Journals/index.php/aijbe | editorial@sadipub.com 

 

    

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HOW ELECTRONIC BANKING HAS CHANGED THE FINANCIAL  

PERFORMANCE OF NIGERIAN DEPOSITS MONEY BANKS  
  
  
  

Muhammad Aminu Isa  

Department of Accounting, Bayero University  

 
Abstract: This study investigates the impact of electronic banking on the financial performance of Deposits 

Money Banks in Nigeria. The study employs a descriptive analysis using secondary data from reports and 

publications, and statistical package for the social sciences to analyze data. The results show that electronic 

banking has a positive influence on the financial performance of Nigeria’s commercial banks. Mobile, internet 

banking, and the use of ATM cards significantly contribute to the financial performance of Nigeria’s Deposits 

Money Banks. The study recommends that Nigerian commercial banks increase their efforts towards adopting 

e-banking to automate their service delivery to customers. Furthermore, industry policymakers and regulators 

must acknowledge electronic banking as a major input when crafting guidelines to regulate the industry.  

 
Keywords: Electronics Banking, Financial Performance, Mobile Banking, Internet Banking, ATM Cards.  

  

  

Introduction  

In recent years, electronic banking has been highly appreciated in the banking sector service provision, 

especially in online banking services. Developing countries like Nigeria have witnessed an immense 

transformation in their banking system, with the introduction of electronic banking, online transactions, 

mobile banking, and Automated Teller Machines (ATMs). The rapid growth in e-banking services by 

commercial banks in Nigeria is due to its operational efficiency, cost advantage, and convenience. The 

implementation of e-banking has brought a new dimension and paradigm shift in the banking sector. This 

study aims to examine the effect of e-banking on the financial performance of Nigerian commercial banks. 

The study relies on a descriptive analysis using secondary data from reports and publications. The data was 

analyzed using the statistical package for the social sciences. The study examines the relationship between 

mobile banking, internet banking, and the use of ATM cards on the financial performance of Deposits Money 

Banks in Nigeria.  

The study findings reveal that e-banking significantly contributes to the financial performance of Nigeria’s 

commercial banks, as measured by the return on assets. E-banking, which comprises mobile banking, internet  

banking, and the use of ATM cards, has become a crucial component of the Nigerian banking sector. The study 

recommends that Nigerian commercial banks and policymakers increase their efforts towards adopting 

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ebanking to automate their service delivery to customers. Furthermore, industry regulators must consider 

ebanking as a major input when crafting guidelines to regulate the industry.  

In conclusion, the study provides insights into the impact of electronic banking on the financial performance 

of Nigeria’s commercial banks. The study contributes to the existing literature on e-banking and provides 

practical implications for the Nigerian banking industry. The findings of the study provide evidence for 

policymakers and commercial banks to pay more attention to electronic banking as a crucial component of 

their operations.  

2. LITERATURE REVIEW    

2.1 Banking Sector in Nigeria   

Banking Industry in Nigeria started during the colonial era with the establishment of Colonial Banks with the 

primary aim of meeting the commercial needs of the Colonial Government. Banking system in Nigeria is 

regulated through the Central Bank of Nigeria. This apex bank started operation on July 1, 1959.   

In 1892, African Banking Corporation and British West Africa, now First Bank of Nigeria, were established 

in Nigeria. In 1925, Anglo-Egyptian Bank and National Bank of South Africa gave birth to Barclays Bank in 

Nigeria. In 1948, the British and French Bank for Commerce and Industry started operations in Nigeria, which 

metamorphosed into the United Bank for Africa. The first domestic bank In Nigeria was established in 1929 

and called Industrial and Commercial Bank. The bank liquidated in 1930 and was replaced by Mercantile 

Bank in 1931. The African Continental Bank was created in 1949 as the only sustainable indigenous bank 

after the liquidation of the Industrial and Commercial bank. The year 1947, shows the emergence of an 

agricultural bank called the Nigerian Farmers and Commercial Bank.The Central Bank of Nigeria (CBN) is 

the Central bank and apex monetary authority of Nigeria established by the CBN Act of 1958 and commenced 

operations on July 1, 1959.   

Central Bank of Nigeria (CBN) is the major regulatory objectives of the bank as stated in the CBN Act are to: 

maintain the external reserves of the country, promote monetary stability and a sound financial environment, 

and to act as a banker of last resort and financial adviser to the federal government. The central bank's role as 

lender of last resort and adviser to the federal government has sometimes pushed it into murky regulatory 

waters. After the end of imperial rule, the desire of the government to become pro-active in the development 

of the economy became visible especially after the end of the Nigerian civil war, the bank followed the 

government's desire and took a determined effort to supplement any short falls in credit allocations to the real 

sector. The bank soon became involved in lending directly to consumers, contravening its original intention 

to work through commercial banks in activities involving consumer lending. However, the policy was an 

offspring of the indigenization policy at the time. Nevertheless, the government through the central bank has 

been actively involved in building the nation's money and equity centers, forming securities regulatory board 

and introducing treasury instruments into the capital market.   

2.2 E-banking    

Emerging information technology tremendously affects the growth and flexibility in the user friendliness of 

electronic banking (Nadim & Begum, 2008). In recent times electronic banking has been highly appreciated 

in the banking sector service provision, and especially in online banking services. Foreign as well as local 

banks are adopting online banking system to enhance their services. They have adopted superior technology 

through automated transaction systems for attracting clients and offering inter-branch and inter-bank 

networking.     



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Nadim and Begum (2008) observe that these systems seem neglected by the customers, in spite of rigorous 

efforts by the banks. It is perceived that in e-banking customer impression is quite vital for successful ebanking 

service delivery. The banking sector has tried to collect more information to discern factors that endear 

customers to online banking (Gerrard & Cunningham, 2003; Sathye, 1999). Various authors have proposed 

different models on customer online banking adoption. These models comprise of technology acceptance 

model that has its origin from theory of reasoned action, which has become the most widely used, and the 

theory of planned behaviour.  

2.3 Technology Acceptance Model  

This model is at times referred to as Technology Acceptance Theory (TAT) it addresses the adoption behaviour 

of customers which is usually assessed by the aim to use a specified system which is predicated on the 

impression of its usefulness and the convenient usability of the system. Previous authors researched on the 

fundamental construct of TAMs validity in forecasting the acceptance of individual’s and noted that TAMs 

fundamental construct does not wholly address the explicit effect of technology and the usability factors that 

actually influence the user’s acceptance (Moon & Kim, 2001). Davis, 1989 contents that expected usefulness 

is usually termed as an individual belief to improve the degree job performance by the application of modern 

technology of information system. Perceived effortlessness of use shows how easy an individual learns the 

operations of the emerging technology and information system. The model emphasizes the positive impact of 

perceived simplicity of use on the impression of the system’s usefulness (Gefen, Karahanna, & Straub, 2003).   

Pikkarainen, Karjaluoto & Pahnila (2004) carried out a survey in Finland to establish the actual impact of 

perceived usefulness and concluded that it endeared use of inventive, autonomous, self-service and user 

friendly technologies provided by banks for access of financial services to the users in the twenty first century. 

Gerrard and Cunningham (2003) noted that the perceived usefulness rested on the services provided by the 

bank. These services range from paying utility bills, checking account balances, loan applications, money 

transfer abroad, and getting pertinent mutual funds information.    

In conclusion, the likelihood of the adoption of e-banking is dependent on its perceived usefulness (Potaloglu 

& Ekin, 2001). The major drivers of e-banking acceptance are viewed as the TAM variables which include 

the aspects of perceived ease of use and perceived usefulness.    

2.4 Empirical Studies    

2.4.1 International Research Studies    

Several research studies have been carried out on the performance of banks that have embraced the use of 

ebanking platform. The main reason is that the profitability of banks utilizing e-banking purely focuses on the 

impending costs and resultant revenue implications (Guru & Staunton 2002; Berger, 2003).     

A study by Mohammad & Saad (2011) on the impact of electronic banking on the performance of Jordanian 

banks over the period (2000- 2010) concluded that electronic banking negatively affects banks’ performance 

which was akin to the findings of Delgado, Hernando & Nieto (2007) and Siam (2006). Electronic banking 

adoption impacts on a bank’s risk profile. The risk management principles issued by Basel Committee in July 

2003 for electronic banking recognize the related risk factors and the committee’s aim was to promote and 

enhance safety of services provided by online banking while observing flexibility in line with emerging 

technologies as a result of the turbulent environment.     

Unlike the study of Nader (2011) who observed Saudi Arabia’s commercial banks profit efficiency over the 

period of time ranging from 1998-2007. The survey study findings provide that accessibility of banking via 

the mobile phone, the ATMs and the various bank branches had a significance on profitability and efficiency 



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in Saudi Arabia’s banks. Scrutiny by Malhotra & Singh (2009) on the effect of internet banking on 

performance of commercial banks in India found that there was insignificant relationship. This corresponds 

to the deductions of DeYoung (2005); Arnaboldi & Claeys (2010).     

Similarly, a study done by Hernando and Nieto (2005) on commercial banks numbering 72 in Spain over a 

period of 1994-2002 to establish their financial performance on the adoption of a transactional website found 

that there was a significant impact on profitability, which was the same as DeYoung, Lang & Nolle (2007) 

who observed that profitability is highly realized in internet banks than in non internet banks in traditional 

analogue banks. De Young et al. (2007) identified the factors that affect bank’s performance in the e-banking 

platform by undertaking a survey study of United States (US) community banks and did an appraisal on virtual 

click and mortar banks effect on firm’s performance. The study confounded that bank’s profits actually 

improved due to online banking by accelerating meaningful revenue.    

A consumer acceptance of online banking study by Pikkarainen et al (2004) found that banks get noteworthy 

cost savings by offering online banking services and that it enables them to trim their branches and reduce on 

the staff numbers which gives way to self-service channels (Karjaluoto, Koivumäki, & Salo, 2003). Centeno 

(2004) notes that there are two categories of factors affecting e-banking adoption, these are; factors that relate 

to retail banking, and those that relate to the infrastructure and technology accessibility comprising of skills 

and competences on the part of customers in the usage of internet and other associated technologies, internet 

penetration rate, technological attitude, and internet security and privacy issues. It again involves aspects such 

as online banking culture, banking culture, mutual trust in banking institutions and push in internet banking. 

Berger (2003) observed how bank profits are affected by banks spending in view of the prevailing competition 

and concluded IT leads to cost saving, but higher spending on IT generates network effects that affect profits 

negatively. Simpson (2002) posits that operating costs reduction and high revenues realization is a major driver 

to ebanking. A comparison study between emerging and developed markets depicted that greater revenues and 

lower operating costs are realized in developed markets. Furst, Lang, & Nolle (2002) contended that the 

application of click and mortar business model in Federal Chartered US banks results in reasonably high return 

on equity (ROE). They also noted the banks with greater profitability resulted from embracing internet 

banking after 1998.   

Polatoglu & Ekin (2001) undertook a study on Turkish retail banking sector in which they found out that 

actually e-banking reduces banks’ operational costs and it accelerates customer’s satisfaction and retention 

rate. Sullivan and Richard (2000) studied USA brick and mortar banks and found no significant advantage of 

internet banking in this practice. Jayawardhena (2000) showed that cost reduction, profitable gains, and 

efficiency are derived from internet banking, yet it is noticed that very few banks use it and that only fewer 

clients constituting less than five hundred thousand has so far embraced the technological services in ebanking 

in the UK.    

2.4.2 Local Research Studies    

Various studies done in Nigeria have also shown the effect of e-banking on performance in the banking 

industry. Kariuki (2005) studied Nigeria’s commercial banks and the effect on financial performance due to 

the different products developed. The study found out that the development of new products positively affected 

financial performance in Nigeria’s banks. Oluwagbemi, Abah, & Achimugu (2011) conducted a study on 

Nigeria’s commercial banks adoption of electronic banking. The study findings revealed that the adoption was 

of great benefit but was predicated on the bank services being available 24/7, facilitating faster service delivery 

and customer satisfaction.    



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Chaven (2013) in his study found that banks offering internet banking are mainly large banks with a large 

asset base as well as profit margin as contrasted with non-internet banking banks. The results revealed that 

averagely, internet banks post more profit than non-internet banks. However, the multiple regression results 

revealed a small, not significant association between a bank’s performance and offering internet banking, 

larger significant and negative association with risk profile of the banks meaning that internet based banks 

become better off from risks such as nonperforming loans. However, the benefit expected of internet banking 

is yet to show some substantial positive financial gains and requires future investigation as internet banking 

matures in the country.    

A research paper done by Kariuki (2005), showed the positive impacts of ICT on banks’ performance. He 

established that deployment of e-banking results in increased profits though in long-term but not in short-term 

due to the initial capital outlay for the ICT investment. Further he offers evidence that the usage of e-banking 

can result in market share growth, diversified product range and products that are tailored to suit customer 

needs which ensures that the commercial banks are in an improved position to satisfy customer demands.     

2.5 Research Framework    

A research framework is necessary to develop on how the relation between e-banking and financial 

performance of the Nigerian banking industry is correlated and the direction between the pairs.    

 
   

3. RESEARCH METHODOLOGY    

3.1 Population and sample size   

The study was centered on all the commercial banks governed and licensed by the Central Bank of Nigeria. A 

census survey was used.  

  

        

Automatic Teller Machine        

Mobile Banking       

Internet Banking       

Mobile Banking       

Independent Variables       Dependent Variable       



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3.2 Data Collection    

The study used secondary data which encompassed a mixture of published and unpublished material pertinent 

to the research. The secondary data is significant as it includes the logical framework of the research (Agwu 

& Carter, 2014).  For the purpose of the study, the collected secondary data included Central Bank of Nigeria 

periodic reports and financial reports of the commercial banks for the period 2013 to 2017.    

Data on financial performance such as earnings and financial ratios were obtained from the audited financial 

statements while data on electronic banking services such as services offered and their respective quantities 

were obtained from the various CBN periodic reports.  3.3 Data Analysis    

The data was cleaned, sorted and checked for completeness and consistency after collection. Statistical 

package for the social sciences (SPSS) was then used to analyses the data’s descriptive statistics such as 

maximum, minimum, mean, and standard deviation to outline sample characteristics and significant trends 

from the collected data. A multiple linear regression model was then employed to estimate the relationships 

between the variables.    

3.4 Model Specification   

The regression model was as follows:   

Ybt = αo + β1ATMit + β2Mit + β3Iit + ε    

Where;    

Ybt=financial performance represented by ROA of bank b in year.   

Bt= Estimate value of the year.   

ATM=Value of transaction through ATM.   

M= Value of transaction through mobile banking.   

I= value of transaction through internet banking. t= Year. ε= Error term.   

To find the value of and β, the multivariate regression model was employed. The individual beta estimate 

reliability was then tested by the p-value in the ANOVA table.    

The regression model’s significance was tested at 95% confidence interval and 5% level of significance.    

4. RESULTS AND DISCUSSIONS   

4.1 Descriptive analysis    

The descriptive statistics results are tabulated below:    

Table 1: Descriptive Statistics   

 
Description   ROA   

Banking ATM 
cards Mobile (NM)  Paymentts Internet (NM)   

(NM)   

 
N   42   42   42   42   

Minimum   -7.54   0   0   0   

Maximum   7.152   14773.21   10124.981   125109.6   

Mean   2.667   8568.242   5872.34   72753.014   



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Stnd. Dev.   2.679   4236.359   2903.436   37412.21   

Skewness   -1.285   -0.359   -0.359   -0.243   

Std. Error   0.365   0.365   0.365   0.365   

Kurtosis   3.949   -1.285   -1.285   -1.325   

Std. Error   0.717   0.717   0.717   0.717   

 
Source: Generated from SPSS statistical output   

Table 4.1 above illustrates the average ROA of all the commercial banks in Nigeria over the study period to 

be 2.667 with a maximum of 7.152 and the minimum of 7.54. A small standard deviation of 2.679 was noted 

implying that there was low variation of ROA across the commercial banks.  In addition, the mean of the total 

value of ATM cards was 8568.242 million recording the highest value of 14773.21 million. The mean total 

value of the mobile payments was 5872.34 million with a maximum of 10124.981 million. The internet 

banking mean was noted to be 72753.014 million across the commercial banks. High standard deviations were 

noted on total value of ATM card transactions, mobile payments as well as internet banking meaning there 

was a high variation across all the commercial banks with regards to total transaction value of ATM cards, 

mobile payments and internet banking.   

4.2 Correlation Analysis    

To measure the strength of the association between the variables, the study put to use the Karl Pearson’s 

coefficient of correlation. The Pearson product-moment correlation coefficient determines the strength of a 

linear association between two variables and is denoted by r which can take a range of values from +1 to -1. 

A value of 0 designates that there is no association between the two variables. A value greater than 0 designates 

a positive association while a value less than 0 designates a negative association. The Pearson’s coefficient 

was employed to ascertain the presence or absence of linear correlation between the variables of e-banking 

and financial performance. The outcomes are as follows:    

Table 2: Correlation Analysis    

Variable                   

ROA   

       ATM Cards   Mobile payments  Internet 

Banking     

ROA     1.000             

ATM Cards     0.679    1.000          

Mobile payments          0.612    0.326    1.000      

Internet Banking      0.574   0.254    0.076   1.000   

Source: Generated from SPSS statistical output   

Results from table 4.2 above reveal that there is a significant positive association between use of ATM Cards 

and financial Performance (r = .679, P-value < 0.009). This implies that ATM Cards influences financial 

performance in commercial banks in Nigeria. The findings also disclosed a substantial positive association 



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between mobile payments and financial Performance (r = .612, P-value < 0.013). Thus, implying that mobile 

payments influences financial performance in commercial banks in Nigeria.   

The findings indicated a noteworthy positive association between internet banking and financial 

Performance (r = .574, P-value < 0.026) thus, depicting that internet banking influences financial 

performance in Nigeria’s commercial banks.     

4.4 Regression Analysis    

The correlation coefficient (R) value represents the degree and strength of relationship between dependent 

variable and the independent variables (Sekaran, 2003). Coefficient of correlation ranges between -1 and 1 

and in this model the coefficient of correlation is 0.896 which indicates a positive correlation between ROA, 

ATM Cards, mobile payments, and internet banking. The R Squared is the coefficient of determination which 

indicates how much of the total variation in the dependent variable. From the above the R squared statistic 

gives the goodness of fit of the model which shows how good the regression model approximates the real data 

points. The R squared of this model is 0.802 which shows that the model is a good fit of the actual data. The 

coefficient of determination of 0.802 implies that 80.2% of the variance in dependent variable is explained by 

changes in the independent variables.   4.4.2 ANOVA (Analysis of Variance)    

Table 3: ANOVA (Analysis of Variance)                                       

Model     Sum   
Squares      

of   DF   Mean        Square F   Sig.   

Regression   6.942     3   2.314   6.51   .001a    

Residual   13.507     38   0.355       

Total   20.449     41         

Source: Generated from SPSS Statistical Output   

a. Predictors: (Constant), ATM Cards, mobile payments, and internet banking    

b. Dependent Variable: ROA    

The model summary also indicates that the dependent variable (ROA) is significantly accurately predicted by 

the regression model. The statistical significance of the regression model that was run is shown by the F test. 

The P=0.001, which is less than 0.05 designates that, generally the regression model statistically and 

significantly predicts the outcome variable that is good fit for the data.    

4.5 Coefficient of Correlation    

Table 4: Coefficient of Correlation    

   B     Std. Error     Beta     t     Sig.     

(Constant)     7.232    0.643       11.24    .0000    

Total value from ATM   

Cards     
0.802    0.343    0.23    2.34    .0247    

Total value from mobile payment   
0.769    0.305    0.46    2.52    .0160    



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Total value from internet bank.   0.593    0.291    0.31    2.04    .0486    

   

The overall equation model for ROA, ATM Cards, mobile payments, and internet banking was as follows:    

Ybt = 7.232 + 0.802ATMit + 0.769Mit + 0.593Iit + ε    

From the model, in any given month, the ROA will be 7.232 when all the predictor values are zero. The model 

indicates that when the value processed through ATM Cards changes by one unit the ROA will increase by 

0.802. In addition, mobile payments total changes by one unit the ROA increases by 0.769. Further, the study 

findings revealed that when the internet banking value changes by one unit the ROA will increase by 0.593. 

To test the significance of each individual variable which was based at 0.05 the t-test was carried out. The 

result indicates the mobile payments and internet banking have a value of 0. 0160 and 0.0486 against the ROA 

in the model respectively. This shows that the relationship between ROA, mobile payments and internet 

banking is significant. The relationship between ROA and ATM cards recorded at rate of 0.0247 which is 

significant since it’s less than p-value (P.0.05).    

4.6 Discussion of Findings    

The objective of the study was to assess the effect of electronic banking on the financial performance of 

Deposit Money Banks in Nigeria. This was evaluated by use of secondary data and the succeeding analysis 

centered on the variables of the study (return on assets, value of ATM transactions, value of mobile banking 

transactions and value of internet banking transactions).    

Results indicate that the regression model is significant in explaining the changes in the independent variable 

as measured by return on assets caused by changes in the three independent variables namely value of ATM 

transactions, value of mobile banking transactions and value of internet banking transactions. This is in line 

with the findings of Abaenewe, Ogbulu,  & Ndugbu (2013) that indicated that changes in profitability of 

Nigeria’s commercial banks is significantly explained by variations in electronic funds transfer.    

The study findings indicated that the value processed through ATM cards positively and significantly 

influenced the financial performance of commercial banks in Nigeria. This correlates to Abaenewe, et. al 

(2013) who noted that a steady rise in the financial performance of banks has been occasioned through an 

upsurge in ATM usage as measured by number of ATMs. This also agrees to Jayshree, (2013) who listed 

initiation of accounts, monitoring of accounts and execution and logging of transactions as some of the 

banking services that have been transformed by deployment of ICT by banks. He notes that self service 

facilities have resulted from embracing ICT and this has enabled bank customers to be able to authenticate 

their account numbers and obtain instructions on when and how to receive their credit and debit cards and 

cheque books.    

The study established that mobile banking significantly and positively influences the financial performance of 

commercial banks in Nigeria. This is in line with Mallat, Rossi & Tuunainen (2004) who state that mobile 

services are among the newest services that the banks offer. Through this service, the customers receive 

messages on their cell phones when transactions that pertain to the customers such as those involving their 

cards or accounts take place. This goes a long way into lowering the risk that the customers’ account or cards 

are being exploited by an individual who is not the customer. The finding also tallies to Jegede (2014) that 



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mobile banking has reinvented the methods of operations of banks in Nigeria and positively influenced the 

performance of the commercial banks.    

The study further reveals that internet banking positively and significantly influences the financial 

performance of commercial banks in Nigeria. This correlates with Joseph  (2013) who states internet banking 

permits clients to execute transactions at an opportune place and time. The finding also agrees to Agboola 

(2006) who indicated that modern technology was the major driver of competition in the banking sector. In 

the study an upsurge in the deployment of various e-banking tools was highly evident. The study indicated 

that the utilization of modern ICT practices significantly improves the bank’s reputation and eventually results 

to foster efficient and effective service delivery.  

5.0 CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion   

The study indicates that the e-banking independent variables (ATM, mobile and internet banking) measured 

by the value of transactions effected explain the financial performance of Nigeria’s commercial banks as 

measured by the return on assets. This is inferred from the strong relationship between the dependent variable 

and the independent variables found by the study.    

The study concludes that e-banking has contributed positively to the financial performance of Nigeria’s 

commercial banks. This is inferred from the trends recorded in the variables where the value of transactions 

effected through e-banking had a positive and significant influence on financial performance of commercial 

banks in Nigeria. E-banking provides effective and efficient channels that facilitate improved service delivery 

and diversified products tailored to client needs.    

Kaye, Ongundele & Obaro, (2013) believed that it is now glaring that ATM cards positively and significantly 

influenced the financial performance of commercial banks in Nigeria. In addition, the study concludes that 

mobile banking significantly and positively influences the financial performance of commercial banks in 

Nigeria. The study further concludes that internet banking positively and significantly influences the financial 

performance of commercial banks in Nigeria. Deployment of ATMs, mobile banking and internet banking has 

enabled banks to cut down on their costs for offering services to customers and also to expand their reach to 

a wider market (Sanusi, 2010). E-banking has also enabled the banks to increase the volumes of transactions 

that can be processed in a day to virtually an unlimited number. This works towards improving the 

performance of the banks.    

5.2 Recommendations    

Following the findings above, it is this study’s recommendation that:   

1. There is dire need for commercial banks to increase their efforts towards adoption of e-banking to 

automate their service delivery to customers. This follows the positive effect that e-banking usage has on the 

financial performance of Nigeria’s commercial banks as noted through the study.    

2. The banking industry’s policy makers and regulators also need to cogitate on e-banking as a major 

input when crafting guidelines to regulate the industry. This is as a result of the major influence that technology 

has on the performance of the commercial banks. As the country continues to take on developing partners to 

accentuate its technological capacity, banks will continue to increasingly leverage on technology to improve 

their performance notwithstanding the risks associated   

3. The study further recommends that commercial banks keep embracing the use of mobile banking in 

their day to day operations because the population of people with access to a cell phone keeps swelling every 



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day. The banks should keep working in tandem with mobile network companies to craft innovative services 

that are tailored to their targeted market. Suggestions for Further Research     

1. The banking industry has other players in addition to commercial banks. This study was centered on 

only the registered commercial banks and excluded mortgage finance companies, Bank of Industry, Bank of 

Agriculture, cash remittance providers, credit reference bureaus, microfinance banks, foreign banks 

representation offices and foreign exchange bureaus. It is this studies recommendation that research be carried 

out on the other players in the banking industry to determine effect of electronic banking on the whole banking 

industry in Nigeria   

2. The study also recommends that research be carried out on the effect of ebanking on the performance 

of commercial banks in other countries within west Africa. Most of the major commercial banks in Nigeria 

have expanded into the neighboring countries and such a research will benefit them to focus their strategies 

for increasing their returns in the external market   

3. In addition, the study proposes that research be done in Nigeria on the influence of e-banking on the 

growth of the country’s real gross domestic product in order to establish the residual effect of e-banking on 

Nigeria’s economy. This will enable the banks and Government understands how ebanking usage translates to 

the country’s economic performance instead of looking at its benefits in isolation.    

REFERENCES.    

Abaenewe, Z.C., Ogbulu, O.M., &Ndugbu, M.O. (2013). Electronic Banking and Bank Performance in 

Nigeria.West African Journal of Industrial and Academic Research, 6(1), 171-187.   

Agboola, A. (2006). Information and communication technology (ICT) in banking operations in Nigeria: An 

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