Effect of Automated Teller Machines Usage on Operational Performance of Commercial Banks in Nakuru County, Kenya

Abdullai, Hussein Mohamed

doi:10.11648/j.ijefm.20170503.14

Cited by 2 publications

(4 citation statements)

References 13 publications

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“…However, the effect of ATM and other electronic channels on services and bank earnings need to be estimated so as to justify its deployment. For instance, Abdullai and Nyaoga (2017) suggest that the overall aim of deploying electronic banking gadgets is to achieve the highest possible level of profits. Also, the introduction of IT solutions to traditional banking brought respite for a while as more and more problems manifested again in a short time.…”

Section: Background To the Studymentioning

confidence: 99%

“…Similarly, Abdullai and Nyaoga (2017) opine that banks, by implementing e-channel had to computerize services; this was made popular by the use of ATMs. This helps in task handling, drastically reducing or eliminating queue and helping employee achieve more at a shorter time, boosting efficiency in the workplace.…”

Section: Benefits Of Electronic Banking Channelsmentioning

confidence: 99%

“…There appears to be a link between this theory and the technological adoption model as both of them did emphasis the importance of ease of use as determinant to adoption of a new technology (Lu & Li, 2017). The complexity (its ease of use) of technology will also impact on adoption (Abdullai & Nyaoga, 2017).…”

Section: Innovation Diffusion Theorymentioning

confidence: 99%

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Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

Enoruwa,

Onwumere,

Ibunor

et al. 2023

J. Professional Business Review

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Purpose: Technological innovations are understood as new or improved processes, products or services, the technical characteristics of which are significantly different from the previous ones. Technological innovations in the banking sector have undoubtedly improved the functionality and performance of banks across the globe including West African countries such as Nigeria, Ghana and Coted’Ivoire. It has redefined the way and regime in banking operation in West Africa. It enables banks to improve the quality of service delivery to their numerous customers and makes it easy for customers to access banking services at the lowest cost possible. This study, therefore, focused on examining the impact of technological innovations on bank performance in West Africa. Method: A set of annual time series covering the period 1997 to 2020 and a multiple regression analysis including an autoregressive distributed lag (ARDL) model, a fully modified OLS (FMOLS) model and a dynamic OLS (DOLS) model were used. Bank performance was measured using bank return on assets (ROA) and bank return on equity (ROE), while technological innovation was measured using indicators such as Internet Banking (INB), Automated Teller Machines (ATM), Mobile Banking (MBN) and Point of Sale (POS) whose control variables are inflation rate (INFR) and exchange rate (EXR). Results and conclusion: Findings from the ARDL panel results show that both positive and negative long-term relationships exist between technological innovation and bank performance in West Africa. We thoroughly verified the results from the ARDL model with FMOLS and DOLS and the findings show that technological innovation has a positive and negative long-run relationship with bank performance in West Africa and the results were the same for Nigeria, Ghana and Ivory Coast. Originality/Value: This study, therefore, recommends that improving the quality of technologically innovative tools of banks such as internet banking, ATMs, POS and mobile banking with quality apparatus can lead to improved bank performance. Banks should also invest in cyber security to ensure funds deposited in banks are safe which will boost investor and customer confidence, acceptance and lead to increased bank performance.

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Section: Background To the Studymentioning

confidence: 99%

Section: Benefits Of Electronic Banking Channelsmentioning

confidence: 99%

See 1 more Smart Citation

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

Enoruwa,

Onwumere,

Ibunor

et al. 2023

J. Professional Business Review

View full text Add to dashboard Cite

show abstract

“…The results of their study revealed that e-banking has improved the profitability of banks -the system has facilitated cost reduction and earn profit within a short period of time. Abdullahi and Nyaoga (2017) carried out a study on the impact of the usage of the ATM on the performance of commercial banks in Nakuru County of Kenya, using 28 branch banks. The authors utilized both the correlations and regression analyses to conduct their study.…”

Section: Empirical Literaturementioning

confidence: 99%

E-Banking Payment Instruments and Deposit Money Banks' Performance in Nigeria: An Empirical Investigation

Ughulu

Agbonkhese

2020

Journal of Accounting, Business and Finance Research

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This paper carried out an empirical investigation of the impact of e-banking payment instruments on the performance of Deposit Money Banks (DMBs)in Nigeria for the period 2009 to 2017. The major findings of the paper showed that ATM exerted a negative effect on ROA but was significant at the 5% level; exerted a positive effect on ROE at the 5% level, and negative effect on NPM at the 5% level. POS exerted a negative effect on ROE but was significant at the 5% level; it exerted positive and significant impact on NPM; WB exerted positive and significant effect on ROA and NPM at the 5% level. These findings were robust and impressive as the value of the ECM(-1), -0.3988, -0.4857, -0.5863 and -22682 appeared with the right signs. The coefficients of determination, R 2 , in the three columns showed that all the independent variables accounted for over 50% fluctuations in the dependent variables. The paper concluded that e-banking payment instruments have great potentials in enhancing the performance of the DMBs. It was therefore recommended that the DMBs make it a matter of policy to continually upgrade the efficiency of these all-important instruments to meet the expectations and satisfaction of their clients and hence shareholders' wealth.

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Effect of Automated Teller Machines Usage on Operational Performance of Commercial Banks in Nakuru County, Kenya

Cited by 2 publications

References 13 publications

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

E-Banking Payment Instruments and Deposit Money Banks' Performance in Nigeria: An Empirical Investigation

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