IMPACT OF ELECTRONIC PAYMENT ON THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

ABSTRACT

The study examined the Impact of Electronic Payment on the Financial Performance of Deposit Money Banks in Nigeria between the periods of 2011 to 2017. The study also examined the trend of Electronic Payment of listed Deposit Money Banks in Nigeria. The study randomly selected ten Deposit Money Banks listed on the Nigeria Stock Exchange and obtained data from the Annual reports of these Banks from 2011 to 2017. Data was also sourced from the Central Bank of Nigeria for this study. The data extracted were analyzed using Ordinary Least Square method. Dependent variable Bank profitability was measured by profit after tax of the banks and independent variables were ATM, POS, ONL, MOB and MPS. The analytical method adopted for statistical analysis of the variables was the descriptive statistics. Under descriptive statistics, variables were subjected to frequency and percentages. The level of significance showing the coefficient of the value of ATM usage (0.003519) positively and statistically significant at p< 0.05 (0.0845). This implies a positive and significant relationship between the value of ATM usage and Bank financial performance. Furthermore, the coefficient (0.114899) of the value of MOB usage is positively signed and statically significant at p < 0.05 (0.0107). This means that there is positive and significant relationship between the value of ATM and MOB usage and Bank Financial Performance and the study indicates significance at 5% and 10% respectively. Based on these findings the study recommends that Deposit Money Banks should embark on aggressive re-orientation of customers to create more awareness for the customers to patronize electronic payment facilities especially in areas of ATM and MOB usage since the study reveals that they both have positive impact on Banks profitability. 

Keyword: Deposit Money Banks, Mobil Banking, Profitability, Financial Performance, Electronic Payment