Short-Run Effect of Electronic Banking on the Growth of Nigerian Money Deposit Banks

Abstract

This study is an empirical investigation into the effect of electronic banking on the growth of the Nigerian money deposit banks. Specifically the study determined the effect of internet banking, mobile banking, ATM operations, and POS transactions on the growth of deposit money banks in Nigeria. The independent variables are internet banking, mobile banking, ATM operations and POS transactions. The dependent variables include growth rate of total deposit and growth rate of total assets. Secondary data relating to the variables were sourced from the Central Bank of Nigeria (CBN) annual report and account and CBN statistical bulletin. The Ordinary Least Square (OLS) multiple regression model was used to analyse the data. The study showed a significant effect with internet banking on the growth of deposit money banks, a significant effect with mobile banking on the growth of deposit money banks, no significant effect with ATM operations on the asset growth of deposit money banks and also no significant effect with POS transactions on the asset growth of deposit money banks. The study recommended among others that all banks should adopt electronic banking as a matter of urgency if they must grow, remain relevant, be competitive and profitable and aggressive e-banking awareness through all media of communication should be embarked upon by bank.