Impact Of Electronic Banking Services On Commercial Bank Performance In Nigeria

Abstract

This study focuses on the impact of e-banking services on commercial bank performance (LR) in Nigeria. Monthly time series data were obtained from central bank of Nigeria (CBN) statistical database for the period 2012M01 – 2023M12. Data obtained were analyzed using an Autoregressive and Distributed Lag (ARDL) model. The variables include (LR) liquidity ratio (dependent variable), while the (independent variables) include Automated teller machine (ATM), point of sale (POS) and mobile banking (MB). The overall result from the data analysis shows that there is a statistical and positive impact of e-banking services (ATM, POS and MB) on commercial bank performance (LR) in Nigeria and a causality relationship between ebanking services and bank performance. The study recommends that commercial banks must accelerate digital transformation by investing in advance technologies such as blockchains, improving mobile banking and strengthening cybersecurity. To maintain growth, Nigerian banks must embrace agility, collaboration and customer-centre solutions to counter FinTech competition effectively.