Open AccessElectronic Banking and Growth of Deposit Money Banks Operations: Nigeria Experience
Author(s) -
Victoria Ogochukwu Obi-Nwosu,
Onyekachi Chibueze Onuoha,
so John Okoye
Publication year - 2021
Publication title -
asian journal of economics, business and accounting
Language(s) - English
Resource type - Journals
ISSN - 2456-639X
DOI - 10.9734/ajeba/2021/v21i830416
Subject(s) - business , order (exchange) , database transaction , asset (computer security) , the internet , corporation , electronic banking , finance , financial system , actuarial science , computer security , computer science , world wide web , programming language
The study examined the Nigeria experience of the influence of electronic banking on the growth of deposit money banks in Nigeria. The research design used for the study was the expost-facto research design. The data used in this study were obtained from the annual reports and statements of accounts of Nigeria deposit insurance corporation. CBN annual report and account, CBN statistical bulletin; various online journals and literature. In order to achieve the objective of this study, a linear regression was adopted on both functional and statistical models. The study found that internet banking has a negative impact on growth rate of total deposit of deposit money banks in Nigeria with a regression coefficient of -10.09143. Automated Teller Machine (ATM) operation has a positive impact on asset growth of deposit money banks in Nigeria with a regression coefficient 37.13510 and Point of Sale (POS) transaction has a positive impact on asset growth of deposit money banks in Nigeria with a regression coefficient 1.334829. The study therefore recommends among others that due to the insignificant relationship that exists between internet banking and deposit growth banks that are yet to fully adopt internet banking should do so as a matter of urgency if they must grow, remain relevant, competitive and profitable. Banks that seek to improve their deposit growth performance and offer numerous products / services in an effective, efficient and cost effective manner. There should be increased awareness creation about the use of smart cards for banking operations and banks should also improve the number of services that ATM can offer the banking public. The Central Bank of Nigeria should ensure that guidelines with respect to POS transactions are properly adhered to.