Electronic Banking and Banking Sector Performance in Nigeria

Abstract

This study investigates electronic banking and performance of the banking sub-sector in Nigeria for the period 2009-2023. Data were analyzed using the Panel Random Effect model technique. The results revealed that mobile pay and ATM banking services increased the ROA of banks with only ATM increasing the banks’ performance indicator significantly. Electronic banking penetration rate increases the banks’ ROA significantly for the period reviewed while POS and web/internet banking services decrease the ROA of banks. The study, therefore, recommends that electronic banking channels should be more secured and strictly monitored, provided with adequate infrastructure with increased access to mobile phone services in order to optimally enhance banks performance in Nigeria.