Agu, Bartram Onyebuchi and Nwankwo, S.N.P (2019) EFFECT OF ELECTRONIC BANKING SYSTEM OF FINANCIAL PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA, 2008-2017. Journal of Accounting Information and Innovation, 5 (9). pp. 1-8. ISSN 4242-406X

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The study examined the effect of Electronic Banking System on financial Performance of selected Deposit Money Banks in Nigeria. The Automated Teller Machine (ATM), Point of Sale (POS), Mobile Money Transfer (MMT) was proxies for Electronic Banking used to examine their effects on the aggregate Return on Equity (ROE) of deposit money banks in Nigeria. The research design was an ex post facto research design which made use of secondary data covering the period of2008-20] 7. The main models that underpinned the study are; Bank-focused Model, bank-led model and non-bank-led model. The study adopted the ordinary least square (OLS) multiple regression method of analysis in determining the extent of the effects exerted on selected deposit money banks by ATM, MMT and PUS. The result of the analysis shows that ATM and MMT have positive and no significant effect on ROE while POS has negative and no significant effect on ROE of selected deposit money banks in Nigeria. The study concluded among others that the introduction of electronic’ banking in Nigeria has a positive and no significant influence on financial performance of selected deposit money banks in Nigeria. MMT has positive and no relationship with ROE. The study recommended among others that management of deposit money banks should provide more A TM stands outside the banking hall to reduce long queues, exposure of customers to hash weather and unknown enemies especially during the pick periods like Mondays, Fridays and during festive periods (Christmas and New Year). 1.0 Introduction: The guidelines on Electronic Banking (e-banking practices in Nigeria which is in line with global trend were introduced by Central Bank of Nigeria (CBN) in 2004. Banks in Nigeria were directed to install Automated Teller Machine (ATM) for cash withdrawals. Specific guidelines were also put in place on standards and use of electronic (e-banking) products such as credit cards, digital cash by CBN in line with international best practices. CBN promoted automated payment instruments, replaced cash transaction mechanism, real time gross and enhanced monetary policy’s transmission mechanism. Real lime Gross Settlement (RIGS) system was implemented in order to eliminate risk in large value payments and increased efficiency of the payment system (CBN, 2004). Electronic banking which serves both as a medium of delivery of banking services and as a strategic tool for business development have gained wide acceptance internationally and has become a marvel to Nigerians. It has abridged the gap by offering speed, efficient, convenience and increased comfort and time savings transactions which are made 24 hours a day without requiring the physical interaction with the bank teller (Agu, 2014) With the Automated Teller Machine (ATM), Point of Sale (POS), and Mobile Phones, one do not need to physically carry large sum of cash around. All that is needed is to locate an ATM and slot your card or position yourself where you can get service and withdraw or transfer your money from your account to another account within seconds.

Item Type: Article
Subjects: H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 16 Oct 2019 08:34
Last Modified: 16 Oct 2019 08:49
URI: http://eprints.gouni.edu.ng/id/eprint/2353

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